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

Question

Quizplus · Accepted Answer

Differential revenue is calculated by subtracting the differential costs from the differential revenues. 
Differential revenue for 2017 = ($150,000 - $60,000) = $90,000 
Therefore, the answer is B) $150,000.

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