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QRC Company Is Trying to Decide Which One of Two

Question 13

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:  Alterrative A  Alternative B  Projected reverue $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 | r | r | r | } \hline & { \text { Alterrative A } } & \text { Alternative B } \\\hline \text { Projected reverue } & \$ 62,500 & \$ 75,000 \\\hline \text { Unit-level costs } & 12,500 & 18,000 \\\hline \text { Batch-level costs } & 6,250 & 12,000 \\\hline \text { Product-level costs } & 7,500 & 8,500 \\\hline \text { Facility-level costs } & 5,000 & 6,250 \\\hline\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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