Answer:
The correct option is A,alternative 2 because it has a higher profit
Explanation:
The profit analysis of both alternatives is done below:
Alternative 1 Alternative 2
Projected revenue $100,000 $125,000
Costs:
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
total costs $65,000 $80,000
Profit(revenue-total costs) $35,000 $45,000
The correct answer is option A,as option 2 has a higher profit of $45,000 compared to alternative 1 of $35,000
