Question: Odin Avionics makes aircraft instrumentation. Its basic navigation radio requires $80 in variable costs and $3,000 per month in fixed costs. Odin sells 10 radios
Odin Avionics makes aircraft instrumentation. Its basic navigation radio requires $80 in variable costs and $3,000 per month in fixed costs. Odin sells 10 radios per month. If the company further processes the radio, to enhance its functionality, it will require an additional $27 per unit of variable costs, plus an increase in fixed costs of $270 per month. The current sales price of the radio is $290. The marketing manager is sure that Odin can charge a higher sales price for the improved version. At what sales price level would the new, improved radio begin to improve operating earnings? (Round to the nearest whole dollar.) sales price higher than $344 O A. at a O B. at a sales price lower than $290 O C. at a sales price of $397 O D. at a sales price of $290
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