During 2016, the Beach Restaurant had sales revenues and food costs of $800,000 and $600,000, respectively

Accounting Nov 17, 2020

During 2016, the Beach Restaurant had sales revenues and food costs of $800,000 and $600,000, respectively. During 2017, Beach plans to introduce a new menu item that is expected to increase sales revenues by $100,000 and food costs by $40,000. Assuming no changes are expected for the other food items, operating profits for 2017 are expected to increase by

A.
$260,000.

B.
$100,000.

C.
$60,000.

D.
$40,000.