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
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