Alvarez Company Is Considering the Following Alternatives What Is the Incremental Profit?
A)$10000
B)$0
C)$6000
D)$4000

question 138

Multiple Choice

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

• A)$10000
• B)$0
• C)$6000
• D)$4000

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Definitions:

Customer Encouragement

Strategies or practices designed to motivate or persuade consumers to engage with, purchase, or support a product or service.

Union Demands

Requests or requirements put forth by labor unions during negotiations, typically relating to salaries, working conditions, benefits, and other employment terms.

Offensive Lockout

An action by employers to prevent workers from working during a dispute, aiming to apply pressure on the negotiation process.

Defensive Lockout

A tactic used by employers to prevent employees from working during a labor dispute, aimed at protecting the employer's interests against anticipated actions such as strikes.