Homework Answers
| 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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