For the year ended December 31, 2012, Abel Co. incurred direct costs of $500,000 based on a

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Question:

For the year ended December 31, 2012, Abel Co. incurred
direct costs of $500,000 based on a particular course of action
during the year. If a different course of action had been taken,
direct costs would have been $400,000. In addition, Abel’s 2012
fixed costs were $90,000. The incremental cost was

$ 10,000
$ 90,000
$100,000
$190,000