Consider the Following Decision Option Data What Is the Incremental Profit for Option #2?
A)$5,600
B)($2,400)

question 39

Multiple Choice

Consider the following decision option data: $\begin{array}{lll}&\text { Option \#1 } & \text { Option \#2 } \\\text { Number of units } & 150 & 200 \\\text { Revenue per unit } & \$ 25 & \$ 25 \\\text { Variable cost per unit } & \$ 12 & \$ 12 \\\text { Lost revenue from choosing option } & \{\$ 500\} & \{\$ 4,000\} \\\text { Cost savings from choosing option } & \$ 0 & \$ 1,000 \\\text { Avo idable fixed cost } & \$ 0 & \$ 0\end{array}$ What is the incremental profit for Option #2?

• A)$5,600
• B)($2,400)
• C)$2,600
• D)($400)
• E)$1,400

---

Definitions:

Prices

The amount of money required to purchase a good or service, determined by factors like supply and demand in the market.

Ownership

The legal right or title to an asset or property, implying control and responsibility over it.

Jelly

A food spread made from fruit juice and sugar, thickened with pectin, commonly consumed with bread.

Peanut Butter

A food paste or spread made from ground dry roasted peanuts, often used in sandwiches and as a base in various recipes.