Carlo Company makes bulk quantities of cleaning fluids. They currently sell 1,000 containers a month at a
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Question:
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 disinfectant, they could charge $25 per unit for the improved product. It would cost them a total of $3,800 per month to make that alteration.
What would be the effect on operating income?
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