Deeper Clean Company makes bulk quantities of cleaning fluids.They currently sell 1,300 containers a month at a sales price of $24 per unit.If they add a new scent,they could charge $28 per unit for the improved product.It would cost them a total of $900 per month to make that alteration.If they decide to process further,it will improve their operating income.

Question

Quizplus · Accepted Answer

By adding a new scent and charging a higher price, Deeper Clean Company can increase their sales revenue. The cost to make the alteration is relatively low at $900 per month, so the increased profit from higher sales should improve their operating income. Therefore, it's true that they can improve their operating income by processing further.

Deeper Clean Company Makes Bulk Quantities of Cleaning Fluids