Marlow Company makes bulk quantities of cleaning fluids
They currently sell 1,200 containers a month at a sales price of $23.75 per unit. If they add a new scent, they could charge $25 per unit for the improved product. It would cost them a total of $800 per month to make that alteration. If they decide to process further, it will improve their operating income.
Indicate whether the statement is true or false
TRUE .Differential revenue [($25 - $23.75 ) x 1,200] $1,500
Differential fixed cost 800
Differential operating income $700
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