Question

Bogart Company is considering two alternatives. Alternative A will have revenues of $146,100 and costs of $104,400. Alternative B will have revenues of $185,900 and costs of $127,100. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income.

Answer 1

Choosing alternative B would increase net income by $17,100

Step-by-step explanation:

The analysis showing the incremental revenues,costs and net income of alternative A and B is shown below:

Alternative A Alternative B Difference between A&B

Revenues $146,100 $185,900 $39800

Costs ($104,400) ($127,100) ($22700 )

Net income $41,700 $58,800 $17,100

Alternative B records a higher net income compared to Alternative A,hence choosing alternative B would increase net income by $17,100

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