Al's Brake Shop had sales revenues and operating costs in 2014 of $650,000 and $525,000,...
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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, what is the amount of operating profits that are expected be earned in 2015? a. $125,000 b. $85,000 c. $160,000 d. $35,000 |
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