An alternative under consideration involves incurring $50 in costs to generate $60 in revenue.The differential revenue for this alternative is $10.

Name: An alternative under consideration involves incurring $50 in costs to generate $60 in revenue.The differential revenue for this alternative is $10.
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Question

Quizplus · Accepted Answer

The differential revenue is actually $60, not $10. Differential revenue refers to the additional revenue generated by choosing one alternative over another, not the net profit or gain after costs.

An Alternative Under Consideration Involves Incurring $50 in Costs to Generate