Arlo 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 decline by $120.

It would increase by $300.

It would increase by $50.

It would decline by $800.

Please respond with the calculation and explanation so I can understand the problem for my own. Thank you!