Search This Blog
Labels
Introduction To find incremental revenue and cost, we subtract Current revenue and cost from Projected revenue and cost. Answer Current Situation Projected Sales and Profit Incremental Revenues and Costs Total Revenue Php1,500,000 Php1,800,000 + Php3000,000 Variable Cost 575,000 425,000 - Php 332,000 Direct Fixed Costs 625,000 700,000 + Php 75,000 Indirect Fixed Costs 100,000 100,000 No change Profit Php 200,000 Php 575,000 + Php 375,000 Profit increases by Php 375,000, thus a new camera and coffee maker must be purchased.