Sandwiches Galore Is a Small Shop Looking to Expand Its

Essay

Sandwiches Galore is a small shop looking to expand its product offerings.The company is evaluating two alternatives: tacos and soups.Annual projections for sales of tacos are as follows: Sales $144,000;variable costs $80,000;fixed costs $16,000.Annual projections for sales of soups are as follows: Sales $60,000;variable costs $20,000;no additional fixed costs.
Perform differential analysis to determine which alternative is more profitable,and by how much.Assume that adding tacos is alternative 1 and adding soups is alternative 2.