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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 TourProjected revenue$8,000$10,000Variable costs2,0006,000Fixed costs3,0003,000Profit$3,000$1,000What are the incremental (differential) costs of the Western Tour?
Multiple Choice
$2,000.
$3,000.
$4,000.
None of these choices are correct.
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