BE23-2 Ming Company is considering two alternatives. Alternative A will have sal

Q: BE23-2 Ming Company is considering two alternatives. Alternative A will have sal

Alternative A Alternative B Net Income Increase Decrease Revenues 150000 180000 30000 Costs 100000 120000 -20000 Net Income 50000 60000 10000 Alternative B is better than Alternative A Alternative A Alternative B Net Income Increase Decrease Revenues 150000 180000 30000 Costs 100000 120000 -20000 Net Income 50000 60000 10000

ID: 2389880 • Letter: B

Question

BE23-2

Ming Company is considering two alternatives. Alternative A will have sales of $150,000 and costs of $100,000. Alternative B will have sales of $180,000 and costs of $120,000. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. (If affect on net income of adopting Alternative B is a decrease use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). Enter all other amounts as positive amounts and subtract where necessary.)

Alternative Alternative Net Income
Increase

A

B

(Decrease)

Revenues $ $ $
Costs

Net Income
$

$

$

is better than .

Explanation / Answer

Alternative

Net Income
Increase

Decrease

Revenues

150000

180000

30000

Costs

100000

120000

-20000

Net Income

50000

60000

10000

Alternative B is better than Alternative A