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QRC Company Is Trying to Decide Which One of Two

Question 121

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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 $62,500$75,000 Unit-level costs 12,50018,000 Batch-level costs 6,25012,000 Product-level costs 7,5008,500 Facility-level costs 5,0006,250\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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