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 disinfectant, they could charge $25 per unit for the improved product. It would cost them a total of $3 800 per month to make that alteration. If so, what would be the effect on profit?
A) It would increase by $3 000.
B) It would increase by $400.
C) It would decline by $1 200.
D) It would decline by $800.
Correct Answer:
Verified
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