Airbolt Avionics makes aircraft instrumentation. Their basic navigation radio requires $120 in variable costs and requires $4,000 per month in fixed costs. If it processes the radio further to enhance its functionality, it will require an additional $20 per unit of variable costs and $200 per month in fixed costs. The marketing manager believes the sales price of the radio can be increased from $270 to $300. In making this decision, the amount of additional fixed costs per month is a relevant cost.

True or False