A project will increase revenue from $1.6 million to $2.2 million. Wages are 50% of revenue. Maintenance on the machine will be $42,000 more than it is on the machine that will be replaced.

What are the incremental expenses (i.e. change in combined wages and maintenance costs) that will result from accepting this project?

a.

$0.342 million

b.

$0.600 million

c.

$0.258 million

d.

$0.300 million