Al's Brake Shop had sales revenues and operating costs in 2014 of $650,000 and $525,000,respectively.In 2015,Al's plans to expand the services it provides to customers to include lubrication services.Revenues are expected to increase by $85,000 and operating costs by $50,000 as a result of this expansion.Assuming that there are no changes to the existing brake business,operating profits would be expected to increase during 2015 by

Question

Quizplus · Accepted Answer

The increase in operating profits is calculated by subtracting the increase in operating costs ($50,000) from the increase in revenues ($85,000), resulting in an increase of $35,000.

Al's Brake Shop Had Sales Revenues and Operating Costs in 2014