Sandhill Company is considering two alternatives. Alternative A will have sales of $157.300 and costs of $100,800. Alternative B will have sales of $181.500 and costs of $139,600. Compare alternative A with alternative B showing incremental revenues, costs, and net income. If an amount reduces the net income then enter with a negative sign preceding the number, eg. 15,000 or parenthesis, eg. (15,0001) Revenues Costs Net income $ Alternative is better than Alternative B Net Income Increase (Decrease)

Sandhill Company is considering two alternatives. Alternative A will have sales of $157.300 and costs of $100,800. Alternative B will have sales of $181.500 and costs of $139,600. Compare alternative A with alternative B showing incremental revenues, costs, and net income. If an amount reduces the net income then enter with a negative sign preceding the number, eg. 15,000 or parenthesis, eg. (15,0001) Revenues Costs Net income $ Alternative is better than Alternative B Net Income Increase (Decrease)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter12: Corporate Valuation And Financial Planning

Section: Chapter Questions

Problem 2STP

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