In 2020, the Merkel Company had revenues of $2,000,000 and costs of $1,500,000. During 2021, Merkel will be introducing a new product line that is expected to increase sales revenue by $200,000 and costs by $160,000. Assuming no changes are expected for the other products, the operating profits are expected to increase by:
A. $40,000.
B. $540,000.
C. $160,000.
D. $200,000.
Answer: A
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Indicate whether the statement is true or false
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