Question
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 | $ | 14,000 | $ | 17,000 | |||
| Variable costs | 1,000 | 7,000 | |||||
| Fixed costs | 4,000 | 4,000 | |||||
| Profit | $ | 9,000 | $ | 6,000 | |||
What are the incremental (differential) costs of the Western Tour?
Group of answer choices
None of these answers are correct.
$6,000.
$3,000.
$4,000.
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Introduction To Financial Accounting
Authors: CHARLES T. HORNGREN AND ET ALL.
11th Edition
9352862473, 978-9352862474
