In 2020, the merkel company had revenues of $2,600,000 and costs of $2,100,000. during 2021, merkel will be introducing a new product line that is expected to increase sales revenue by $260,000 and costs by $172,000. assuming no changes are expected for the other products, the operating profits are expected to increase by: multiple choice a. $588,000. b. $260,000. c. $172,000. d. $88,000.

d. $88,000

Explanation:

In 2020, Merkel company's

Revenue = $2,600,000

Cost = $2,100,000

Operating profits = Revenue -  Cost

= $2,600,000 - $2,100,000

= $500,000

In 2021, the company's;

Revenue increases by $260,000

New revenue = $260,000 + $2,600,000 = $2,860,000

New Cost = $2,100,000 + $172,000 = $2,272,000

New Operating profits = $2,860,000 - $2,272,000

= $588,000

Expected increase in Operating profits = $588,000 - $500,000

= $88,000

The expected increase in operating profit amounts to $88,000.

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;