$1$ point

Airbolt Avionics makes aircraft instrumentation. Their basic navigation radio requires $$130$ in variable costs and requires $$5,000$ per month in fixed costs. If it processes the radio further to enhance its functionality, it will require an additional $$40$ per unit of variable costs and $$300$ per month in fixed costs. The marketing manager believes the sales price of the radio can be increased from $$270$ to $$290.$ In making this decision, the amount of additional fixed costs per month is a relevant cost.

True

False