The costs and revenues associated with two alternatives are listed below:  Alternative 1 Alternative 2Projected 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 1 because it has a higher profit.
B. Alternative 2 because it has a higher profit.
C. Alternative 1 because it has fewer unit-level costs.
D. Alternative 2 because it has the same product- and facility-level costs.


Answer: B

Business

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