In 2020, the TransUnion Company had consulting revenues of $1,000,000 while costs were $750,000. In 2021, TransUnion will be introducing a new service that will generate $150,000 in sales revenues and $60,000 in costs. Assuming no changes are expected for the other services, operating profits are expected to increase between 2020 and 2021 by:
A) $250,000.
B) $150,000.
C) $90,000.
D) $60,000.

Question

Quizplus · Accepted Answer

The increase in operating profits is the difference between the new service's revenues and costs: $150,000 - $60,000 = $90,000.

In 2020, the TransUnion Company Had Consulting Revenues of $1,000,000