BIT Company makes bulk quantities of cleaning fluids. They currently sell 1,000 containers a month at a

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Question:

BIT 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.