Starforce Avionics makes aircraft instrumentation. Its basic navigation radio requires $80 in variable costs and $5000 per month in fixed costs. Further processing the radio, to enhance its functionality, will require an additional $28 per unit of variable costs but no change to the fixed costs. The marketing manager believes that the company would be able to increase the sales price from $290 to $310. If Starforce decides to further process the product, operating income would ________.

A) remain the same
B) increase by $28 per unit
C) increase by $108 per unit
D) decrease by $8 per unit


D) decrease by $8 per unit

Business

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An equal stream of periodic payments is called an annuity

a. True b. False Indicate whether the statement is true or false

Business

What is the purpose of providing a legend with a visual aid?

A) A short description is provided that identifies the content of the visual. B) An additional discussion of the visuals content is included. C) A short description of the purpose of the visual is included. D) An explanation of various colors and symbols is provided. E) An explanation of the significance of the visual is provided.

Business

On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available:Beginning inventory, January 1: $5800Net sales: $87,000Net purchases: $85,000The company's gross margin ratio is 30%. Using the gross profit method, the estimated ending inventory value would be:

A. $25,500. B. $26,100. C. $60,900. D. $90,800. E. $29,900.

Business

In the United States, a Private Finance Initiative is used to protect the excessive financial exposure of a contracting agency to a project being developed

Indicate whether the statement is true or false

Business