Question: Starforce Avionics makes aircraft instrumentation. Its basic navigation radio requires $60 in variable costs and $2,000 per month in fixed costs. Further processing the radio,

Starforce Avionics makes aircraft instrumentation. Its basic navigation radio requires $60 in variable costs and $2,000 per month in fixed costs. Further processing the radio, to enhance its functionality, will require an additional $25 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 to $280. If Starforce decides to further process the product, operating income would O A. remain the same O B. increase by $85 per unit C. decrease by $5 per unit D. increase by $25 per unit
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