the manager of a studio cafe, and you are planning to invest on a new camera and a coffee maker designed to increase the productivity of your employees and output (services) produced. Your analyst provided you the following information: A. Complete the table below. Should the new camera and coffee maker be purchased? Explain your answer based on the incremental analysis.
the manager of a studio cafe, and you are planning to invest on a new camera and a coffee maker designed to increase the productivity of your employees and output (services) produced. Your analyst provided you the following information: A. Complete the table below. Should the new camera and coffee maker be purchased? Explain your answer based on the incremental analysis.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Suppose that you are the manager of a studio cafe, and you are planning to invest on a new camera and a coffee maker designed to increase the productivity of your employees and output (services) produced. Your analyst provided you the following information:
A. Complete the table below. Should the new camera and coffee maker be purchased? Explain your answer based on the incremental analysis.
![Current
Situation
Projected Sales
and Profit
Incremental
Revenues and
Costs
Total Revenue
Php1,500,000
Php1,800.000
Variable Cost
575,000
425.000
Direct Fixed Cosls
625,000
700.000
Indirect Fixed Cosis
100,000
100.000
Profit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F92ab1b70-21e4-4959-bd79-df67bbbe290f%2Fe839a84c-0274-41d4-bba9-8b2d2672a1d9%2Flvjzrr_processed.png&w=3840&q=75)
Transcribed Image Text:Current
Situation
Projected Sales
and Profit
Incremental
Revenues and
Costs
Total Revenue
Php1,500,000
Php1,800.000
Variable Cost
575,000
425.000
Direct Fixed Cosls
625,000
700.000
Indirect Fixed Cosis
100,000
100.000
Profit
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