Ask Question
10 January, 16:46

Indigo Industries is considering two new machines. Machine A will generate revenues of $120,000, have variable costs of $40,000, and fixed costs of $8,000. Machine B will generate revenues of $140,000, have variable costs of $30,000, and fixed costs of $8,000.

What is the incremental revenue?

A : $10,000

B : $30,000

C : $0

D : $20,000

+5
Answers (1)
  1. 10 January, 16:49
    0
    The correct answer is B.

    Explanation:

    Giving the following information:

    Indigo Industries is considering two new machines. Machine A will generate revenues of $120,000, have variable costs of $40,000, and fixed costs of $8,000. Machine B will generate revenues of $140,000, have variable costs of $30,000, and fixed costs of $8,000.

    Machine A = 120,000 - 40,000 - 8,000 = 72,000

    Machine B = 140,000 - 30,000 - 8,000 = 102,000

    Incremental revenue = B - A = 30,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Indigo Industries is considering two new machines. Machine A will generate revenues of $120,000, have variable costs of $40,000, and fixed ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers