Question: Celaneo Avionics makes aircraft instrumentation. Its basic navigation radio requires $60 in variable costs and $4,000 per month in foed costs. Celanco sells 20 radios
Celaneo Avionics makes aircraft instrumentation. Its basic navigation radio requires $60 in variable costs and $4,000 per month in foed costs. Celanco sells 20 radios per month if the company further processes the radio, to enhance its functionally, it will require an additional $40 per unit of variable costs, plus an increase in foed costs of $500 per month. The current sales price of the radio is $280. The CEO wishes to improve operating income by $1.200 per month by selling the enhanced version of the radio in order to meet this target, the sales price to be charged for the enhanced product is O A $320 per unit OB. $380 per unit OC. $405 per unit D. $125 per unit
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