(Solved):Sedgwick Inc. is considering Plan 1 which is estimated to have sales of $40,000 and costs of…

 

Question

Sedgwick Inc. is considering Plan 1 which is estimated to have sales of $40,000 and costs of $15,500. The company currently has sales of $37,000 and costs of $14,000. Compare Plan 1 to the current information using incremental analysis.

 

EXPERT ANSWER

Incremental analysis is analysis of differences of tow options.

In the given question,

Current Sales = $ 37,000.00

Plan 1 Sales = $ 40,000.00

Hence Incremental Sales in Plan 1 = 40000 – 37000 =

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