In: Accounting
Looking at Apple INC., think about the types of financial data that would be included and excluded in differential analysis. Propose which specific revenues and costs should be considered in an evaluation to drop or keep a: Customer Product line, In addition, explain sunk and opportunity costs as they relate to Apple. Should these costs be considered in differential analysis? Why or why not?
Performing tilling service | Working at horse stable | Differential | |
Revenues | $1,500 | $1,200 | $300 |
Costs | 150 | 50 | 100 |
Net benefit in favor of tilling service | $200 |