The costs and revenues associated with two alternatives are listed below:

Alternative 1 Alternative2

Projected revenue $ 100,000 $ 125,000

0 0

Unit-level costs 20,000 30,000

Batch-level costs 20,000 25,000

Product-level costs 15,000 15,000

Facility-level costs 10,000 10,000

Which alternative should be selected based on this information?

a. Alternative 2 because it has the same product- & facility-level costs.

b. Alternative 1 because it has fewer unit-level costs.

c. Alternative 2 because it has a higher profit.

d. Alternative 1 because it has a higher profit.