Differential operating profit


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: Differential operating profit
Reference No:- TGS085176

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