During 2016, the Beach Restaurant had sales revenues and food costs of $760,000 and $530,000, respectively. During 2017, Beach plans to introduce a new menu item that is expected to increase sales revenues by $120,000 and food costs by $53,000. Assuming no changes are expected for the other food items, operating profits for 2017 are expected to increase by

$297,000.

$120,000.

$67,000.

$53,000.

Please show all work.