Brief Exercise 20-2

Bogart Company is considering two alternatives. Alternative A will have revenues of $148,400 and costs of $105,000. Alternative B will have revenues of $187,800 and costs of $122,200. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Alternative

AAlternative

BNet Income

Increase (Decrease)

Revenues$

$

$

Costs

Net Income$

$

$

Alternative BAlternative A

is better than Alternative AAlternative B

.