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.
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 =