Question

Question 2 (1 point) Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options for the 3 month break follow: (1) Work full time at a local accounting firm making $2,550 per month. (2) Take a summer class which will cost $800 and work half time making $1,100 per month. (3) Take a class at a cost of $800 and not work at all during the summer. Elroy's incremental profit or loss if he chooses option 2 over option 1 would be Round to two decimal places. Your Answer:

Answer 1

Incremental Profit is a excess profit of new option over previous option profit.

Thus,

Incremental Profit of option 2 over option 1 :

$\textup{= Profit from option 1 - Profit from option 2}$

$\textup{= 2,550*3 - (3*1,100 - 800)}$

$\textup{= 7,650 - 2,500}$

$\bg_green \large \textup{= \$5,150}$

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.