Rose Wilson is entering her senior year as an accounting major and has a number

Question

Rose Wilson is entering her senior year as an accounting major and has a number of options for her summer break. Her options for the 3 month break follow:
(1) Work full time at a local accounting firm making $2,200 per month.
(2) Take a summer class which will cost $800 and work half time making $1,100 per month.
(3) Take a class at a cost of $800 and not work at all during the summer.

Rose's incremental revenue if she chooses option 1over option 2 would be?

a.$6,600   b. $800    c. $3,300   d. $1,600

Explanation / Answer

incremental revenue = 2200 - (2*1100-800) = 800

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