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Consider the Following Decision Option Data What Is the Best Choice?
A)Option #1
B)Option #2
C)Option

Question 35

Multiple Choice

Consider the following decision option data:  Option #1  Option #2  Number of units 150200 Revenue per unit $25$25 Cost per unit $12$12 Lost Revenue from choosing option {$500}{$4,000} Cost saving 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 { Cost per unit } & \$ 12 & \$ 12 \\\text { Lost Revenue from choosing option } & \{\$ 500\} & \{\$ 4,000\} \\\text { Cost saving from choosing option } & \$ 0 & \$ 1,000 \\\text { Avo idable Fixed Cost } & \$ 0 & \$ 0\end{array} What is the best choice?


A) Option #1
B) Option #2
C) Option #1 and Options #2 are equally good choices.
D) Neither Option #1 nor Option #2 should be chosen

Correct Answer:

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