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The Costs and Revenues Associated with Two Alternatives Are Listed

question 137

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The costs and revenues associated with two alternatives are listed below:  Altemative 1  Alternative 2  Projected revenue $100,000$125,000 Unit-level costs 20,00030,000 Batch-level costs 20,00025,000 Product-level costs 15,00015,000 Facility-level costs 10,00010,000\begin{array} { | l | r | r | } \hline & \text { Altemative 1 } & \text { Alternative 2 } \\\hline \text { Projected revenue } & \$ 100,000 & \$ 125,000 \\\hline \text { Unit-level costs } & 20,000 & 30,000 \\\hline \text { Batch-level costs } & 20,000 & 25,000 \\\hline \text { Product-level costs } & 15,000 & 15,000 \\\hline \text { Facility-level costs } & 10,000 & 10,000 \\\hline\end{array} Which alternative should be selected based on this information?


Definitions:

Tuition

The fee that educational institutions charge for instruction.

Books

Physical or electronic publications consisting of written, printed, or illustrated work bound together for reading or study.

Inventory Cost

The total cost associated with holding and managing inventory, including storage, insurance, and obsolescence.

Building

A structure with a roof and walls, such as a house or factory, used for living, working, storage, or other purposes.

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