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Sea Island Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed
Sea Island 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 | $190,000 | $260,000 |
Unit-level costs | 36,000 | 47,000 |
Batch-level costs | 23,500 | 35,000 |
Product-level costs | 26,000 | 28,000 |
Facility-level costs | 21,000 | 23,500 |
What is the differential revenue for this decision?
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