Question: Starforce Avionics makes aircraft instrumentation. Its basic navigation radio requires $ 7 0 . 0 0 in variable costs and $ 2 , 0 0

Starforce Avionics makes aircraft instrumentation. Its basic navigation radio requires $70.00 in variable costs and $2,000.00 per month in fixed costs. Further processing the radio, to enhance its functionality, will require an additional $25.00 per unit of variable costs but no change to the fixed costs. The marketing manager believes that the company would be able to increase the sales price from $260.00 to $280.00. If Starforce decides to further process the product, operating income would.
A. increase by $95.00 per unit
B. remain the same
C. increase by $25.00 per unit
D. decrease by $5.00 per unit
Starforce Avionics makes aircraft

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