Question: Indigo Industries is considering two new machines. Machine A will generate revenue of $120,000, have variable costs of $40,000, and fixed costs of $8,000. Machine

Indigo Industries is considering two new machines. 


  1. Machine A will generate revenue of $120,000, have variable costs of $40,000, and fixed costs of $8,000. 

  2. Machine B will generate revenue of $140,000, have variable costs of $30,000, and fixed costs of $8,000. 

What is the incremental revenue ?

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