Question: Pegasus Avionics makes aircraft instrumentation. Its basic navigation radio requires $ 6 0 in variable costs and $ 3 , 0 0 0 per month
Pegasus Avionics makes aircraft instrumentation. Its basic navigation radio requires $ in variable costs and $ per month in fixed costs. Pegasus sells radios per month. If the company further processes the radio, to enhance its functionality, it will require an additional $ per unit of variable costs, plus an increase in fixed costs of $ per month. The current sales price of the radio is $ The marketing manager is sure that Pegasus 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.
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Part
A
at a sales price lower than $
B
at a sales price of $
C
at a sales price of $
D
at a sales price higher than $
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