Question: Starforce Avionics makes aircraft instrumentation. Its basic navigation radio requires $ 7 0 in variable costs and $ 5 , 0 0 0 per month

Starforce Avionics makes aircraft instrumentation. Its basic navigation radio requires $

70

in variable costs and $

5, 000

per month in fixed costs Further processing the radio, to enhance its functionality, will require an additional $

28

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 $

290

to $

310

If Starforce decides to further process the product, operating income would

.

increase by $

28

per unit

.

remain the same

.

decrease by $

8

per unit

.

increase by $

98

per unit

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