Chang Industries has already spent $230,000 to produce tables. Those tables can be sold as is for $442,000. Alternatively, the t

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Chang Industries has already spent $230,000 to produce tables. Those tables can be sold as is for $442,000. Alternatively, the t

ables can be processed further by finishing them with a stain for an additional cost of $150,000. The stained tables can be sold for $620,000. Chang should:

Business

1 answer:

Thepotemich [5.8K] · Answer 1 · 2023-06-26T07:41:27+03:00

Incremental revenue is often compared to production costs. The stained tables can be sold for $178,000.

<h3>What is incremental revenue?</h3>

Incremental revenue is the profit that a business earns through rising sales.

It can be used to determine the additional revenue generated by a particular product, investment, or direct sale from a marketing campaign when sales value has grown.

As per the information,

the tables could be sold for $442,000 and after additional processing the tables can be sold for $620,000. The incremental revenue is equal to $620,000 - $442,000 = $178,000

Therefore,The stained tables can be sold for $178,000.

Learn more about incremental revenue here:

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