. Incremental vs. Total Analysis Approaches. Taylor Company currently produces 6,000 units of its major product per month. Financial data for last month are:

The company would like to expand its operations to 7,000 units per month. Fixed costs would increase \(\$ 10,000\) because of the expansion.
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Prepare both a total analysis approach and an incremental analysis approach to evaluate the decision. Compare the results.

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Sales Variable costs. $240,000 144,000 Fixed costs 60,000