Question: The costs and revenues associated with two alternatives are listed below: Alternative 1 Alternative 2 Projected revenue $120,000 $150,000 Unit-level costs 24,000 36,000 Batch-level


The costs and revenues associated with two alternatives are listed below: Alternative 1 Alternative 2 Projected revenue $120,000 $150,000 Unit-level costs 24,000 36,000 Batch-level costs 24,000 36,000 Product-level costs 18,000 18,000 Facility- 12,000 12,000 level costs Which alternative should be selected based on this information? Which alternative should be selected based on this information? Multiple Choice Alternative 2 because it has a higher profit. Alternative 2 because it has the same product- and facility-level costs. Alternative 1 because it has fewer unit-level costs. Alternative 1 because it has a higher profit.
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