A company is considering the following alternatives:
Alternative 1 Alternative 2
Revenues $120,000 $120,000
Variable costs 60,000 70,000
Fixed costs 35,000 35,000
Which of the following are relevant in choosing between the alternatives?
a) Revenues
b) Variable costs
c) Fixed costs
d) Variable costs and fixed costs
b) Variable costs
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Which of the following is a feature of an alienation clause in a loan agreement?
A. The lender can call the whole note due a payable upon non-payment by the owner. B. The borrower can prepay the loan without penalty. C. If the borrower sells the property, the lender may declare the unpaid balance on the note due and payable. D. It makes assumption of the loan possible by another borrower without the lender approval.
If a central bank wishes to "defend its currency," it might follow an expansive monetary policy, which would drive real rates of interest up
Indicate whether the statement is true or false.