Question 9

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Alvarez Company is considering the following alternatives:

Alternative A Alternative B

Revenues $50,000 $60,000

Variable costs 30,000 30,000

Fixed costs 10,000 16,000

What are the relevant revenues?

Select one:

a. 60,000

b. 50,000

c. 4,000

d. 10,000

e. 6,000

Question 10

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In Make or buy decision ,irrelevant costs are :

Select one:

a. the purchase price of the units

b. a+c

c. manufacturing costs that will not be saved

d. b+c

e. manufacturing costs that will be saved