The costs and revenues associated with two alternatives are listed below:
Alternative 1 Alternative 2
Projected revenue $ 100,000 $ 125,000
Unit-level costs 20,000 30,000
Batch-level costs 20,000 25,000
Product-level costs 15,000 15,000
Facility-level costs 10,000 10,000
Which alternative should be selected based on this information?
A. Alternative 2 because it has a higher profit
B. Alternative 1 because it has fewer unit-level costs
C. Alternative 2 because it has the same product-& facility-level costs
D. Alternative 1 because it has a higher profit.
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