Which choice best describes data from the table that support the rese… | Verbal SAT Question

Projected Annual Costs and Profits of Biofuel Profit Models (in dollars)

Method	LCFS revenue	Total revenue	Total cost	Total profit
Heuristic	6,837,474	37,957,674	30,528,134	7,429,540
Lexicographic	9,878,474	40,998,474	30,528,134	10,470,340
Proposed	11,157,472	42,277,472	30,933,469	11,344,003

Biofuels typically emit less carbon than do fossil fuels. In California, biofuel manufacturers have two revenue sources: biofuel sales and LCFS (low carbon fuel standard) credits purchased from them by companies producing fuel that falls short of California’s emission standards. Given the interplay between these revenue streams, Meltem Denizel et al. examined three models for how a biofuel firm might maximize profit: the industry-standard heuristic model, a lexicographic model, and a model proposed by the researchers. They concluded that although their model maximized profit, it might not be ideal for firms that want to minimize cash outflows.

Which choice best describes data from the table that support the researchers’ conclusion?

The proposed model shows the highest total revenue, LCFS revenue, and total cost of all three models.

While the total profit and the LCFS revenue are nearly the same for the proposed model, the total profit is significantly greater than the LCFS revenue for the lexicographic model.

Both the total revenue and total profit for the lexicographic model are higher than those for the heuristic model but lower than those for the proposed model.

While the proposed model projects the highest total profit, it also projects a higher total cost than the lexicographic model, which projects the same total cost as the heuristic model but a higher total profit.