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Carlos Naturals makes bulk quantities of cleaning fluids. The company currently sells 1,000 containers a month at a price of $22 per unit. The addition

Carlos Naturals makes bulk quantities of cleaning fluids. The company currently sells 1,000 containers a month at a price of $22 per unit. The addition of a new disinfectant can fetch them $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?

It would increase by $400.

It would decline by $800.

It would increase by $3,000.

It would decline by $1,200.

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