In 2016, the Merkel Company had revenues of $2,000,000 and costs of $1,500,000. During 2017, Merkel will

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Question:

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

A) $160,000.

B) $40,000.

C) $540,000.

D) $200,000