The difference in revenue earned by increasing production.
I make 100,000 pens earning a profit of $200,000. A customer wants to buy 10,000 additional pens. If I accept that order I will earn $220,000. The incremental revenue is $20,000, the difference between $220,000 and $200,000. It is the extra money I will earn by making 10,000 more pens.
Sign Up to Learn More!
Join our mailing list today to get notified of new discount offers, course updates, Roger CPA Review news, and more!