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Question - Sea Island Company is trying to decide which one of two alternatives it will accept. The costs and revenues associated with each alternative are listed below:
Alternative A
Alternative B
Projected revenue
$255,000
$390,000
Unit-level costs
49,000
60,000
Batch-level costs
36,500
48,000
Product-level costs
39,000
41,000
Facility-level costs
34,000
What is the differential revenue for this decision?
$160,000
$135,000
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