A yard tool manufacturer can produce either metal shovels or rakes. Given the following estimated operating data, use differential analysis to determine which product would result in the highest net income? Shovels Rakes 200,000 250,000 $30.00 $20.00 Units produced and sold Unit selling price Manufacturing costs: Variable (per unit) Fixed (total) Selling and administrative expenses: Variable (per unit) Fixed (total) $18.00 $9.00 $600,000 Incremental revenue Incremental costs: Additional cost of goods sold $2.00 $140,000 Assume the manufacturer currently produces rakes. What are the incremental revenues and costs if the rakes are replaced with shovels? Incremental revenue: Revenue forgone on rakes Additional revenue from shovels price $ $ $2.00 $ 0 x 0 x 0 x

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