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Carlos Naturals Manufactures Bulk Quantities of Cleaning Fluids

Question 192

Multiple Choice

Carlos Naturals manufactures bulk quantities of cleaning fluids.The company currently sells 600 containers a month at a sales price of $22 per unit.The addition of a new disinfectant will result in a sales price of $25 per unit for the improved product.It would cost a total of $3800 per month to make the alteration.Operating income would ________.


A) decline by $13,200
B) increase by $3800
C) increase by $2000
D) decline by $2000

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