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Sandwiches Galore is a small shop looking to expand its product offerings. The company is evaluating two alternatives: tacos and soups. Annual projections for sales
Sandwiches Galore is a small 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. Annual projections for sales of soups are as follows: Sales Final Assessment: Outline and Rubric 7 Accounting for Managerial Decisions Final Assessment: Outline and Rubric $60,000; variable costs $20,000; no additional fixed costs. Required: Perform differential analysis to determine which alternative is more profitable, and by how much. Assume that adding tacos is alternative 1 and adding soups is alternative 2
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