Question

Bogart Company is considering two alternatives. Alternative A will have revenues of $149,400 and costs of $102,900. Alternative B will have revenues of $186,500 and costs of $123,800. Compare Alternative A to Alternative B showing incremental revenues, costs, and net income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Alternative A Alternative B Net Income Increase (Decrease) Revenues $ $ $ Costs Net Income $ $ $

Answer 1

Answer:

                  Alternative A   Alternative B   Net Income (B-A)

Revenues     $149,400        $186,500         $37,100

Costs            $102,900        $123,800         $20,900

Net income  $46,500         $62,7000        $16,200  

Project B has incremental revenue of $37,100, cost $20,900 and net income $16,200.

Explanation:

Net income is amount of earning that a company of individual maker after deducting all the expense from the revenue for a specific period of time. Net income can be calculated by subtracting all the related expenses from the revenue / income for the period.