Homework Answers
$ 8000
Alternative A :
Profit = Revenue - Fixed Cost - Variable Cost
Profit = $30000- $10000-$18000
Profit = $ 2000
Alternative B :
Profit = $44000- $ 16000- $18000
Profit = $ 10000
Therefore,
Incremental Profit = Increase in Profit from Alternative A To Alternative B
= $10000 - $ 2000
= $ 8000
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