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Using Incremental Analysis Fortress Hill Corporation has assembled the following information related to the purchase of a new cable car:

Using Incremental Analysis

Fortress Hill Corporation has assembled the following information related to the purchase of a new cable car:

Peaks
Machine
Valley
Machine
Increase in revenue $44,200 $49,300
Increase in annual operating costs:
    Direct materials 12,200 12,200
    Direct labor 10,200 10,600
    Variable overhead 24,500 26,900
    Fixed overhead (including depreciation) 12,400 12,400

Using incremental analysis and only relevant information, compute the difference in favor of the Valley machine.

  Difference in Favor of Valley Machine
Increase in revenue $  
Increase in annual operating costs  
  Direct labor     
  Variable overhead     
  Total increase in operating costs $  
Resulting change in operating income $  


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Using Incremental Analysis
Fortress Hill Corporation has assembled the following information related to the purchase of a new cable car:
Peaks
Machine
Increase in revenue
Increase in annual...

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