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Scholastic Tours Is Trying to Decide Which One of Two

Question 142

Multiple Choice

Scholastic Tours is trying to decide which one of two tours it will introduce.The costs and revenues associated with each alternative are listed below:  Eastem Tour  Western Tour  Projected revenue $14,000$18,000 Variable costs 2,00010,000 Fixed costs 6,0006,000 Profit $6,000$2,000\begin{array} { l c c c } & \text { Eastem Tour } & \text { Western Tour } \\\text { Projected revenue } & \$ 14,000 & \$ 18,000 \\\text { Variable costs } & 2,000 & 10,000 \\\text { Fixed costs } &\underline{ 6,000 }& \underline{6,000} \\\text { Profit } &\underline{ \$ 6,000} &\underline{ \$ 2,000}\end{array} What are the incremental (differential) costs of the Western Tour?


A) $4,000.
B) $6,000.
C) $8,000.
D) None of these answers are correct.

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