Differential Analysis ln each of four independent cases the
Differential Analysis ln each of four independent cases the amount of differential revenue or differential cost is as follows parentheses indicate decreases 20,000 s0 ?7$(00.000 $0 For each case, determine the missing amount that would be necessary for the net differential amount to be .$10,000 Use a negative signs with answers to reflect decreases Increases (decreases) in $20.000 b.($8,000) Use a negative signs with answers to refilect decreases so s 10.000 5 6 8 9
Solution
1. : 10,000 $ :
Revenue: $20,000 , $0, $10,000,$10,000
Costs : (-$20,000), (-$18,000), (-10,000), $0
2. $8,000
Revenue: $20,000 , $0, $10,000,$10,000
Costs : (-$20,000), $0, (-10,000), $0
