Travon's Limo Service provides transportation services in and around Bentonville. Its profits have been declining, and management is planning to add a package delivery service that is expected to increase revenue by $275,000 per year. The total cost to lease additional delivery vehicles from the local dealer is $60,000 per year. The present manager will continue to supervise all services. However, labor and utilities costs will increase by 40% and rent and other costs will increase by 15% when the package delivery service is added. $ 960,000 Travon's Limo Service Annual Income Statement Before Expansion Sales Revenue Costs: Vehicle leases $400,000 Labor 290,000 Utilities 50,000 Rent 100,000 Other Costs 60,000 Manager's Salary 120,000 Total Costs Operating Profit (Loss) 1,020,000 $ (60,000) a. Prepare a report of the differential costs and reveques if the delivery service is added. b. Should management start up the delivery service? Explain your