Scholastic Tours Is Trying to Decide Which One of Two

Scholastic Tours is trying to decide which one of two tours it will introduce.The costs and revenues associated with each alternative are listed below: $\begin{array}{c}\begin{array}{|l|}\hline \\\hline \text {Projected revenue}\\\hline \text {Variable costs}\\\hline \text {Fixed costs}\\\hline \text {Profit}\\\hline \end{array}\begin{array}{rr}\hline \text { Eastern Tour }\\\hline \$ \quad 14,000 \\\hline 2,000 \\\hline 6,000 \\\hline \$ \quad 6,000 \\ \hline \end{array}\begin{array}{|l|}\hline \text { Western Tour }\\\hline \$ \quad 18,000 \\\hline 10,000 \\\hline 6,000 \\\hline \$ \quad 2,000\\\hline \end{array}\end{array}$
What are the incremental (differential) costs of the Western Tour?

A) $4,000
B) $6,000
C) $8,000
D) None of the above.

Correct Answer:

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