A yard tool manufacturer can produce either metal shovels or rakes. Given the following estimated operating data, use differential analysis to determine which product would result in the highest net income?A yard tool manufacturer can produce either metal shovels or rakes. Given the following estimated operating data, use differential analysis to determine which product would result in the highest net income?

Transcribed Image Text:

Shovels Rakes 200,000 250,000 Units produced and sold.. Unit selling price.. Manufacturing costs: Variable (per unit)... Fixed (total)... Selling and administrative expenses. Variable (per unit) Fixed (total)... $ 30.00 $ 20.00 18.00 $ 9.00 $600,000 $ 2.00 $ 2.00 $140,000