Carlo Company Makes Bulk Quantities of Cleaning Fluids

question 83

Multiple Choice

Carlo 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. What would be the effect on operating 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:

Permanent Disabilities

Long-term impairments that significantly affect one's ability to perform daily activities, which are not expected to improve significantly over time.

Habituated

The process by which an organism decreases or ceases its responses to a repetitive stimulus after being repeatedly exposed to it.

Over-Stimulated

A condition arising from excessive stimuli, leading to a state of overload or heightened agitation and possibly difficulty concentrating or relaxing.

Adjusted

Altered or modified to fit certain conditions or requirements.