Alvarez Company Is Considering the Following Alternatives What Is the Incremental Profit?
A)$10,000
B)$0
C)$6,000
D)$4,000

question 119

Multiple Choice

Alvarez Company is considering the following alternatives: $$\begin{array} { l c c } & \text { Alternative A } & \text { Alternative B } \\\text { Revenues } & \$ 50,000 & \$ 60,000 \\\text { Variable costs } & 30,000 & 30,000 \\\text { Fixed costs } & 10,000 & 16,000\end{array}$$ What is the incremental profit?

• A)$10,000
• B)$0
• C)$6,000
• D)$4,000

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Definitions:

Monetary Values

The financial worth assigned to goods, services, or assets, expressed in terms of currency.

Return On Investment

A measure of the profitability expressed as a percentage of the original investment.

Performance Post-Training

The level of an individual's or group's ability and efficiency after undergoing a specific training program.

Utility

The total satisfaction or value derived from consuming a good or service.