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Scholastic Tours is trying to decide which one of two tours it will introduce. The costs and revenues associated with each alternative are listed below:
Scholastic Tours is trying to decide which one of two tours it will introduce. The costs and revenues associated with each alternative are listed below:
| Eastern Tour | Western Tour | ||||||
| Projected revenue | $ | 16,000 | $ | 19,000 | |||
| Variable costs | 1,000 | 9,000 | |||||
| Fixed costs | 5,000 | 5,000 | |||||
| Profit | $ | 10,000 | $ | 5,000 | |||
What are the incremental (differential) costs of the Western Tour?
3000
5000
8000
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