During 2020, the Beach Restaurant Had Sales Revenues and Food

question 120

Multiple Choice

During 2020, the Beach Restaurant had sales revenues and food costs of $800,000 and $600,000, respectively. During 2021, Beach plans to introduce a new menu item that is expected to increase sales revenues by $100,000 and food costs by $40,000. Assuming no changes are expected for the other food items, operating profits for 2021 are expected to increase by:

• A) $260,000.
• B) $100,000.
• C) $60,000.
• D) $40,000.

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Definitions:

Loam

Loam is a fertile soil type that is a balanced mixture of sand, silt, and clay, known for its excellent moisture retention and aeration qualities, suited for agricultural use.

Hydrologic Cycle

The continuous movement of water on, above, and below the surface of the Earth, including processes such as evaporation, condensation, precipitation, and runoff.

Movement

The act or process of moving or being moved from one place, position, or state to another.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is essential for most forms of life and is the most widely used solvent.