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

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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