Reference: Survey of Accounting 6th edition Book

Based on Chapter 13

These are practice study questions

1) QRC Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below: Alternative A Alternative B Projected revenue W W Unitlevel costs 42,000 53,000 Batchlevel costs 29,500 41,000 Prod uctlevel costs 32,000 34,000 Facilitylevel costs 27,000 29,500 What is the differential revenue for this decision? A) $125,000 B) $100,000 C) $220,000 D] $320,000 5} Max bought a ticket to the championship baseball game for $165- Someone approaches him outside the stadium and offers him $355 for his ticket. If Max decides to go to the game instead of selling his ticket, how much does it cost Max to go to the game? t) 5190 B) 5165 C) 5355 D] None oftheabove. QRC Company is trying to decide which one of two attematives it will accept The costs and revenues associated with each alternative are listed below: Alternative A Alternative B Projected revenue $188,888 $258,888 Unitlevel costs 34,888 45,888 Batchlevel costs 21,588 33,888 Productlevel costs 24,888 26,888 Facility-level costs 19,888 21,588 What is the differential revenue for this decision