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20 November, 08:50

Carlos Naturals manufactures bulk quantities of cleaning fluids. The company currently sells 700 containers a month at a sales price of $ 28 per unit. The addition of a new disinfectant will result in a sales price of $ 30 per unit for the improved product. It would cost a total of $ 4 comma 400 per month to make the alteration. Operating income would

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  1. 20 November, 09:12
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    Operating income would be $ 16,600

    Explanation:

    Consider the new circumstance addition of a new disinfectant.

    Incremental Costs and Revenues - addition of a new disinfectant

    Sales (700 * $ 30) 21,000

    Alteration Cost 4,400 (4,400)

    Net Income 16,600

    Therefore Operating income would be 16,600
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