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The Costs and Revenues Associated with Two Alternatives Are Listed

question 137

Multiple Choice

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:

Constant Horsepower

A motor characteristic where horsepower remains constant across varying speeds.

Rectifier

A device that converts alternating current (AC) to direct current (DC).

Converter

A device that changes electrical energy from one form to another, such as AC to DC or vice versa.

DC Bus

A common electrical pathway used in DC power systems, linking the power supply, converters, and the loads.

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