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:

Production Technology

Engages in the methods, processes, and equipment used to produce goods and services, emphasizing efficiency and effectiveness.

Product Price

The expenditure involved in purchasing a good or service.

Average Cost

The expense associated with each unit's production, determined by splitting the total production costs by the units produced.

Analysis

The detailed examination or study of something in order to understand its nature, structure, or essential features.