Vinh Company is considering two alternatives. Alternative A will have sales of $150,000 and costs of $100,000.

Question:

Vinh Company is considering two alternatives. Alternative A will have sales of $150,000 and costs of $100,000. Alternative B will have sales of $180,000 and costs of $120,000. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. Which alternative should you choose?