Items boosting revenue or cutting costs raise profit

Steps:

• Define profit as total revenue minus total expenses.
• Identify items 1 and 4 as expense increases, which reduce profit.
• Identify items 2 and 3 as revenue increase (item 2) and expense decrease (item 3), which raise profit.
• Select combination of items 2 and 3 for net profit gain.

Why C is correct:

• Profit formula (Revenue - Expenses) shows revenue gains and expense cuts directly increase net profit.

Why the others are wrong:

• A: Includes item 1 (expense rise), lowering profit despite item 3.
• B: Includes items 1 and 4 (both expense rises), decreasing profit.
• D: Includes item 4 (expense rise), offsetting item 2's revenue gain.

Final answer: C