Problem:
In 2013, the Turnkey Company had consulting revenues of $1,000,000 while costs were $750,000. In 2014, Turnkey will be introducing a new service that will generate $150,000 in sales revenues and $60,000 in costs.
Required:
Question: Assuming no changes are expected for the other services, operating profits are expected to increase by
Note: Provide support for your rationale.