24.

Viper Avionics makes aircraft instrumentation. Its basic navigation radio requires $90 in variable costs and $4000 per month in fixed costs. Further processing the radio, to enhance its functionality, will require an additional $27 per unit of variable costs, plus an increase in fixed costs of $280 per month. The marketing manager believes that they would be able to increase the sales price of the radio from $280 to $300. Viper sells 40 radios per month. If Viper decides to further process the radio, monthly operating income would ________.

Select one:

A. increase by $4960

B. decrease by $4960

C. increase by $800

D. decrease by $560

23.

Qualitative information that a manager might evaluate in making a decision would include all of the following except ________.

Select one:

A. the reduction in control over delivery time due to subcontracting

B. upsetting regular customers by offering discounts to selected customers

C. the effect of layoffs on employee morale

D. calculating the breakeven point under two different alternatives