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Mel's Subs is a senall shop looking to expand its product offerings. The company is evaluating two alternatives: tacos and soups. Annual projections for sales

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Mel's Subs is a senall shop looking to expand its product offerings. The company is evaluating two alternatives: tacos and soups. Annual projections for sales of tacos are as follows: Sales \$144.000; variable costs \$80,000; fixed costs \$16.000. Aninual projectians for saies of soups are as follows: Sales $60,000; variable costs $20.000; no additional fixed costs. Required: Perfocm ditferential analysis to determine which alternative is more profitable, and by how much. Assurne that adding tacos is. altemative 1 and adding soups is alternative 2

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