Alvarez Company Is Considering the Following Alternatives What Is the Incremental Profit?
A)$10,000
B)$0
C)$6,000
D)$4,000

Alvarez Company is considering the following alternatives: $$\begin{array} { l c c } & \text { Alternative A } & \text { Alternative B } \\\hline \text { Revenues } & \$ 50,000 & \$ 60,000 \\\text { Variable costs } & 30,000 & 30,000 \\\text { Fixed costs } & 10,000 & 16,000\end{array}$$ What is the incremental profit?

A) $10,000
B) $0
C) $6,000
D) $4,000

Correct Answer:

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