What would be the effect on operating income

Assignment Help Financial Accounting

Reference no: EM13788925

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?

It would increase by $300.

It would decline by $120.

It would increase by $50.

It would decline by $800.

Reference no: EM13788925

Questions Cloud

Access the financial statements and related disclosure : Access the financial statements and related disclosure notes of Google Inc., from its website at investor.google.com. In google's balance sheet, deferred income taxes in 2010 are reorted as both a current asset ($259 million) and a noncurrent asset (..

Physical inventory on the horizontal axis : The ABC inventory matrix shows an ABC inventory classification based on annual usage on the vertical axis and an ABC inventory classification based on physical inventory on the horizontal axis.

Characteristics and objectives of purposeful interviews : Compare and contrast the characteristics and objectives of purposeful interviews, traditional interviews, and interrogations

Trend-adjusted exponential smoothing model : After plotting demand for four periods, an emergency room manager has concluded that a trend-adjusted exponential smoothing model is appropriate to predict future demand. The initial estimate of trend is based on the net change of 30 for the three..

What would be the effect on operating income : 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 $7..

Explain relationship between language and thought : discussion is the Sapir-Whorf Hypothesis and the relationship between language and thought. Based upon what you've read, do you think that people who speak different languages view world in fundamentally different ways?

Explain the reasons for your decision : After completing the reading on "Thinking," respond to the questions below: What steps does your textbook's author recommend for achieving your short term goals? Explain the reasons for your decision and conclude with your best possible choice

Enter interest income on municipal bonds : What line on 1040 do you enter interest income on municipal bonds, and interest income on certificate of deposit for universal savings, dividends on gm stock, medical expenses , withholding for state income taxes , and property taxes on home and prop..

Estimate the trend component of monthly demand : A manager of a store that sells and installs spas wants to prepare a forecast for January, February, and March of next year. Her forecasts are a combination of trend and seasonality. She uses the following equation to estimate the trend component ..

User Account

All Pages