Samson Designers producers a lady's handbag that normally sets for $120. The company produces 800 units annually but has the capacity to produce 1, 100 units. An order from a customer has been received for 200 handbags at $85 each that would not disrupt current operations. Current costs for the handbags are as follows.

Direct materials $23.00
Direct labor 45.00
Variable overhead 7.00
Fixed overhead 12.00
Total 87.00

In addition the customer would like to add a monogram to each bag which would require an additional $4 per bag in additional labor costs. Samson would also have to purchase a piece of equipment to create the monogram which would costs $800. This equipment would not have any other users. Which statement is true with regard to this situation?

A. Incremental revenues will exceed incremental costs by $400
B. Incremental revenues will exceed incremental costs by $1, 200
C. Incremental costs will exceed incremental revenues by $1, 200
D. Incremental costs will exceed incremental revenues by $2,000

On january 1, 2017, fisher corporation purchased 40 percent (90,000 shares) of the common stock of bowden, inc. for $980,000 in cash and began to use the equity method for the investment. the price paid represented a $48,000 payment in excess of the book value of fisher's share of bowden's underlying net assets. fisher was willing to make this extra payment because of a recently developed patent held by bowden with a 15-year remaining life. all other assets were considered appropriately valued on bowden's books. bowden declares and pays a $90,000 cash dividend to its stockholders each year on september 15. bowden reported net income of $400,000 in 2017 and $348,000 in 2018. each income figure was earned evenly throughout its respective year. on july 1, 2018, fisher sold 10 percent (22,500 shares) of bowden's outstanding shares for $338,000 in cash. although it sold this interest, fisher maintained the ability to significantly influence bowden's decision-making process. prepare the journal entries for fisher for the years of 2017 and 2018. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field. do not round intermediate calculations. round your final answers to the nearest whole dollar.)