Respuesta :
Incremental income that the carrot company has gained is $1500
as the proceeds were obtained by adding additional $1500.
Carrot company had the option to stay at a sales of $2000 but they chose to produce jarred baby food which gave them a whopping revenue jump of $5000.
- Incremental income is derived from the following formula
sales done - capital employed
i.e. 5000 - 3500 = 1500
- By spending additional $1500, it was able to generate an additional income of upto $3000, which made their incremental income up to 3000-1500 = 1500.
Hence the incremental income is $1500 as derived by the formula above.
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