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Campus Package Delivery (CPO) provides delivery services in and around Paradise. Its profits have been declining, and management is planning to add an express service

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Campus Package Delivery (CPO) provides delivery services in and around Paradise. Its profits have been declining, and management is planning to add an express service that is expected to increase revenue by $285.000 per year. The total cost to lease the necessary additional package dellvery vehicles from the local dealer is $28.000 per year. The present manager will continue to supervise all services at no increase in salary. Due to expansion, however the labor costs and utilities would increase by 50 percent Rent and other costs will increase by 20 percent Required: a. Prepare a report of the differential costs and revenues if the express service is added (Enter all amounts as positive numbers.) Required: a. Prepare a report of the differential costs and revenues if the express service is added. (Enter all amoun Difference Campus Package Delivery Income Statement Status Quo Alternative No Express With Express Service Service Sales revenue $ 753,000 Costs Vehicle leases 293,000 Labor 225,000 Utilities 35,000 Rent 61,000 Other costs 37,000 Manager's Salary 111,000 Total costs s 762,000 $ 0 Operating profit (loss) $ (9,000) 0

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