In 2016,the Merkel Company had revenues of $2,000,000 and costs of $1,500,000.During 2017,Merkel will be introducing a new product line that is expected to increase sales revenue by $200,000 and costs by $160,000.Assuming no changes are expected for the other products,the operating profits are expected to increase by

Question

Quizplus · Accepted Answer

To calculate the increase in operating profits, we need to subtract the increase in costs from the increase in revenue. Therefore, the increase in operating profits is $200,000 - $160,000 = $40,000.

In 2016,the Merkel Company Had Revenues of $2,000,000 and Costs