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: What is the differential revenue for this decision?

Question

Quizplus · Accepted Answer

To find the differential revenue, we need to subtract the revenue from Alternative A from the revenue from Alternative B. 
$300,000 - $275,000 = $25,000.

Therefore, the differential revenue is $25,000.

The best choice would be to go with Alternative B, as it has a higher revenue than Alternative A.

QRC Company Is Trying to Decide Which One of Two