Question: Pegasus Avionics makes aircraft instrumentation. Its basic navigation radio requires 590 in variable costs and $3,000 per month in foxed costs. Pegasus sells 10 radios

 Pegasus Avionics makes aircraft instrumentation. Its basic navigation radio requires 590

Pegasus Avionics makes aircraft instrumentation. Its basic navigation radio requires 590 in variable costs and $3,000 per month in foxed costs. Pegasus 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 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 eamings? (Round to the nearest whole dollar) O A. at a sales price of $407 OB. at a sales price higher than $344 OC. at a sales price of $290 O D. at a sales price lower than 5290

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