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Accounting

The JKL Restaurant had sales revenues and food costs in 2005 of$800,000 and $600,000 respectively. In 2006 JKL will be introducing a new menu item that will generate $100,000 in sales revenues and $40,000 in food costs. Assuming no changes are expected for the other food items, the differential operating profit for 2006 is:

a. $260,000

b. $100,000

c. $60,000

d. $40,000

e. Some other answer ______________________.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9447238

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