Question: 7) Viper Avionics makes aircraft instrumentation. Its basic navigation radio requires $80 in variable costs and $2000 per month in fixed costs. Further processing the
7) Viper Avionics makes aircraft instrumentation. Its basic navigation radio requires $80 in variable costs and $2000 per month in fixed costs. Further processing the radio, to enhance its functionality, 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 increase the sales price of the radio from $260 to $300. Viper sells 30 radios per month. If Viper decides to further process the radio, monthly operating income would A) increase by $1200 B) increase by $3950 C) decrease by $350 D) decrease by $3950
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