Bogart company is considering two alternatives. alternative a will have revenues of $160,000 and costs of $100,000. alternative b will have revenues of $180,000 and costs of $125,000. compare alternative a to alternative b showing incremental revenues, costs, and net income.

Alternative A has lower incremental revenue but it's lower incremental costs makes the net income higher than of Alternative B.

Explanation:

Alternative A

The net income is computed with the formula as:

Net Income = Incremental Revenue - Incremental Cost

= $160,000 - $100,000

= $60,000

Alternative B

The net income is computed with the formula as:

Net Income = Incremental Revenue - Incremental Cost

= $180,000 - $125,000

= $55,000

Alternative A has lower incremental revenue but it's lower incremental costs makes the net income higher than of Alternative B.