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In 2016, the Merkel Company had revenues of $2,900,000 and costs of $2,400,000. During 2017, Merkel will be introducing a new product line that is

In 2016, the Merkel Company had revenues of $2,900,000 and costs of $2,400,000. During 2017, Merkel will be introducing a new product line that is expected to increase sales revenue by $290,000 and costs by $178,000. Assuming no changes are expected for the other products, the operating profits are expected to increase by

$612,000.

$290,000.

$178,000.

$112,000.

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