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Table 1: Operating Budget Fertile Valley Supply Store-Operating Budget Option A(S) Option B(S) 600,000 250,000 120,000 650,000 220,000 500,000 Sales: Feed Seed Fertilizer Variable Cost:
Table 1: Operating Budget Fertile Valley Supply Store-Operating Budget Option A(S) Option B(S) 600,000 250,000 120,000 650,000 220,000 500,000 Sales: Feed Seed Fertilizer Variable Cost: Materials Labor Office Expenses Fixed Expenses: Taxes and licenses Depreciation and rent 300,000 150,000 10,000 700,000 120,000 90,000 20,000 60,000 10.000 80,000 Based on the information of Table 1 - the operating budget, answer the following question. 4. Which of the following statement is correct? A) Option A generates a higher profit B) Option B generates an economic loss (negative profit) C) The total expense of option B is $800,000 D) The total Sales revenue of option A is $1,000,000 E) None of the above
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