Determining the incremental revenue


The Old Van Rental Company has 6 vans available for rent late on Wednesday night when the office gets a call from a small group of tourists wishing to rent 3 vans for the next day (one day rental). The daily rate that the rental company charges is $40 per van. However, the group is willing to pay just $30 per van. The company has fixed costs of $ 200,000. What will be the incremental revenue generated if the rental company decides to accept the price offered by the group?

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Finance Basics: Determining the incremental revenue
Reference No:- TGS047378

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