QRC Company Is Trying to Decide Which One of Two

question 121

Multiple Choice

QRC Company is trying to decide which one of two alternatives it will accept.The costs and revenues associated with each alternative are listed below: $$\begin{array} { l c r } & \text { Alternative A } & \text { Alternative B } \\\text { Projected revenue } & \$ 62,500 & \$ 75,000 \\\text { Unit-level costs } & 12,500 & 18,000 \\\text { Batch-level costs } & 6,250 & 12,000 \\\text { Product-level costs } & 7,500 & 8,500 \\\text { Facility-level costs } & 5,000 & 6,250\end{array}$$ What is the differential revenue for this decision?

• A) $25,000
• B) $12,500
• C) $62,500
• D) $75,000

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