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What are the incremental differential costs of tour

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Reference no: EM13395858

Centennial Tours is trying to decide which one of two tours it will introduce. The costs and revenues associated with each alternative are listed below:

 

Tour A

Tour B

Projected revenue

$7,000

$11,000

Variable costs

1,000

6,000

Fixed costs

3,000

3,000

Profit

$3,000

$1,000

What are the incremental (differential) costs of Tour B?

Reference no: EM13395858

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