Calculate the impact on monthly operating income from the following data?

Cairo Corporation makes aircraft instrumentation. Their basic navigation radio requires $80 in variable costs and requires $2,000 per month in fixed costs. If they process the radio further to enhance its functionality, it will require an additional $25 per unit of variable costs, plus an increase in fixed costs of $800 per month. The marketing manager believes that they would be able to boost their price of the radio from $260 to $300. Cairo sells 30 radios per month.

Answer rating: 100% (QA)

Sell as is Process further Sales 7800 9000 ... View the full answer