AFB Systems is considering a new marketing campaign that will require the addition of a new computer programmer and new software.The programmer will occupy an office in AFB's current building and will be paid $8,000 per month.The software license costs $1,000 per month.The rent for the building is $4,000 per month.AFB's computer system is always on,so running the new software will not change the current monthly electric bill of $900.The incremental expenses for the new marketing campaign are

Question

Quizplus · Accepted Answer

Incremental expenses are additional costs directly resulting from a new decision. Here, they include the programmer's salary ($8,000 per month) and the software license ($1,000 per month), totaling $9,000. Rent and electricity are not incremental as they do not change with the decision.

AFB Systems Is Considering a New Marketing Campaign That Will