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 operational income.

Question

Quizplus · Accepted Answer

Calculations:
(1,000 × $22.75) - (1,000 × $22) = $750
$750 - $700 = $50

Arlo Company Makes Bulk Quantities of Cleaning Fluids