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: Alternative A Alternative B Projected revenue $ 125,000 $ 150,000 Unit-level costs 25,000 36,000 Batch-level costs 12,500 24,000 Product-level costs 15,000 17,000 Facility-level costs 10,000 12,500 What is the differential revenue for this decision? Multiple Choice $50,000 $25,000
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: Alternative A Alternative B Projected revenue $ 125,000 $ 150,000 Unit-level costs 25,000 36,000 Batch-level costs 12,500 24,000 Product-level costs 15,000 17,000 Facility-level costs 10,000 12,500 What is the differential revenue for this decision? Multiple Choice $50,000 $25,000
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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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:
Alternative A | Alternative B | ||||||
Projected revenue | $ | 125,000 | $ | 150,000 | |||
Unit-level costs | 25,000 | 36,000 | |||||
Batch-level costs | 12,500 | 24,000 | |||||
Product-level costs | 15,000 | 17,000 | |||||
Facility-level costs | 10,000 | 12,500 | |||||
What is the differential revenue for this decision?
Multiple Choice
-
$50,000
-
$25,000
-
$125,000
-
$150,000
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