Arlo Company Makes Bulk Quantities of Cleaning Fluids

question 21

Multiple Choice

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 so, what would be the effect on operational income?

• A) It would decline by $120.
• B) It would increase by $300.
• C) It would increase by $50.
• D) It would decline by $800.

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Definitions:

Universal Basic Income

A financial model proposing that all citizens receive a regular, unconditional sum of money from the government.

Proponents

Individuals or groups who support or advocate for a particular idea, policy, or project.

Income Equality

A situation where earnings are distributed in a way that all individuals or households achieve a similar level of income, minimizing wealth disparities.

Discrimination

Involves unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.