Answer:
The correct answer is B.
Explanation:
Giving the following information:
Indigo Industries is considering two new machines. Machine A will generate revenues of $120,000, have variable costs of $40,000, and fixed costs of $8,000. Machine B will generate revenues of $140,000, have variable costs of $30,000, and fixed costs of $8,000.
Machine A= 120,000 - 40,000 - 8,000= 72,000
Machine B= 140,000 - 30,000 - 8,000= 102,000
Incremental revenue= B - A= 30,000
