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Paul Cable Source Income Statement Sales Revenue $8765 Costs...

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Question

Accounting

Paul Cable Source Income Statement

Sales Revenue $8765

Costs

Wire 1500

Plastic 800

Labor 2650

Utilities 350

Rent 1200

Other 350

Total Cost 6850

Operating Profit $1915

If Paul moves the business his sales revenues would increase 15 percent, wire costs would decrease by 5 percent, Labor and plastic would be up the same as sales, utilities would be reduced by 18 percent. Rent and other are unchanged Prepare a Differential Cost Analysis that would show Paul his results if he moves and the difference between the alternatives. What would you tell paul to do?

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