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Consider the Following Decision Option Data What Is the Incremental Profit for Option #2?
A)$5,600
B)($2,400)

Question 39

Multiple Choice

Consider the following decision option data:  Option #1  Option #2  Number of units 150200 Revenue per unit $25$25 Variable cost per unit $12$12 Lost revenue from choosing option {$500}{$4,000} Cost savings from choosing option $0$1,000 Avo idable fixed cost $0$0\begin{array}{lll}&\text { Option \#1 } & \text { Option \#2 } \\\text { Number of units } & 150 & 200 \\\text { Revenue per unit } & \$ 25 & \$ 25 \\\text { Variable cost per unit } & \$ 12 & \$ 12 \\\text { Lost revenue from choosing option } & \{\$ 500\} & \{\$ 4,000\} \\\text { Cost savings from choosing option } & \$ 0 & \$ 1,000 \\\text { Avo idable fixed cost } & \$ 0 & \$ 0\end{array} What is the incremental profit for Option #2?


A) $5,600
B) ($2,400)
C) $2,600
D) ($400)
E) $1,400

Correct Answer:

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