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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 TourWestern Tour
Projected revenue$16,000$19,000
Variable costs1,0009,000
Fixed costs5,0005,000
Profit$10,000$5,000


What are the incremental (differential) costs of the Western Tour?

3000

5000

8000

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