Al Madinah Tire Company is considering the following alternatives: Alternative 1 Alternative 2 Revenues OMR 120,000 OMR 115,000 Shipping costs 60,000 70,000 Repair costs 45,000 25,000 When looking at repair costs, choosing Alternative 2 will affect net income by a: Select one: O a. None of the answers are correct Ob. 20,000 increase O c. 5,000 increase O d. 20,000 decrease O e. 10,000 decrease

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Al Madinah Tire Company is considering the following alternatives:
Alternative 1
Alternative 2
Revenues
OMR 120,000
OMR 115,000
Shipping costs
60,000
70,000
Repair costs
45,000
25,000
When looking at repair costs, choosing Alternative 2 will affect net income by a:
Select one:
O a. None of the answers are correct
O b. 20,000 increase
O c. 5,000 increase
O d. 20,000 decrease
O e. 10,000 decrease
Transcribed Image Text:Al Madinah Tire Company is considering the following alternatives: Alternative 1 Alternative 2 Revenues OMR 120,000 OMR 115,000 Shipping costs 60,000 70,000 Repair costs 45,000 25,000 When looking at repair costs, choosing Alternative 2 will affect net income by a: Select one: O a. None of the answers are correct O b. 20,000 increase O c. 5,000 increase O d. 20,000 decrease O e. 10,000 decrease
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