Question: Sales revenue Variable cost ...... Contribution ... Fixed costs...... Operating profit.. Status Quo Alternative (do not accept offer) (accept offer) Difference $800,000 $860,000 $60,000 (400,000

Sales revenue Variable cost ...... Contribution ... Fixed costs...... Operating profit..

Sales revenue Variable cost ...... Contribution ... Fixed costs...... Operating profit.. Status Quo Alternative (do not accept offer) (accept offer) Difference $800,000 $860,000 $60,000 (400,000 (436,000) (36,000 $400,000 $424,000 $24,000 240,000 240,000 $160,000 $184,000 $24,000 Sales revenue Variable cost ...... Contribution ... Fixed costs...... Operating profit.. Status Quo Alternative (do not accept offer) (accept offer) Difference $800,000 $860,000 $60,000 (400,000 (436,000) (36,000 $400,000 $424,000 $24,000 240,000 240,000 $160,000 $184,000 $24,000

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