Arlo Company makes bulk quantities of cleaning fluids. They currently sell 1 000 containers a month at a price of $22 per unit. If they added a newer scent, they could charge $22.75 per unit for the improved product. It would cost them a total of $700 per month to make that alteration. If they decide to process further, it will improve their profit.

Question

Quizplus · Accepted Answer

The additional revenue from the price increase ($0.75 per unit) for 1,000 units is $750, which exceeds the additional cost of $700, resulting in a net profit increase of $50.

Arlo Company Makes Bulk Quantities of Cleaning Fluids