In 2016,the TransUnion Company had consulting revenues of $1,000,000 while costs were $750,000.In 2017,TransUnion will be introducing a new service that will generate $150,000 in sales revenues and $60,000 in costs.Assuming no changes are expected for the other services,operating profits are expected to increase between 2016 and 2017 by:

Question

Quizplus · Accepted Answer

In 2016, the operating profit for TransUnion was $1,000,000 - $750,000 = $250,000. 
In 2017, with the new service, the operating profit will be ($250,000 + $150,000) - ($750,000 + $60,000) = $590,000. 
Therefore, the operating profit is expected to increase by $590,000 - $250,000 = $340,000. However, the question asks for the increase in operating profit only, so the answer is $340,000 - $250,000 = $90,000. Therefore, the correct choice is C.

In 2016,the TransUnion Company Had Consulting Revenues of $1,000,000 While