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Marigold Corp. is considering the following alternatives: Alternative A $30000 18000 10000 Alternative B $46000 18000 16000 R

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Answer #1
A B
Revenues 30,000 46,000
Less:Variable costs (18000) (18000)
Less:Fixed costs (10,000) (16,000)
Profit 2,000 12,000

Hence incremental profit=(12000-2000)=$10,000.

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