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Flintstone Children's Vitamins produces multivitamins for children. Currently a bottle of 100 vitamins sells for $8.00. This multivitamin contains many beneficial vitamins such as Vitamin
Flintstone Children's Vitamins produces multivitamins for children. Currently a bottle of 100 vitamins sells for $8.00. This multivitamin contains many beneficial vitamins such as Vitamin A and others. Research has shown that calcium is also good for children and the current Flintstone Children's Vitamins does not include calcium. Management is considering adding calcium to the vitamins to improve the value of the vitamins. This will increase variable costs by the cost of the calcium - $0.25 per bottle of 100 vitamins. There will be no change in fixed costs. The company will price the new calcium fortified vitamins at $8.45 per bottle of 100 to compete with other similar products. Assuming there is a robust market for children's vitamins with calcium, Flintstone should [ Select ] because they will increase income by [ Select ] per bottle sold
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