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Celaneo Avionics makes aircraft instrumentation. Its basic navigation radio requires $80 in variable costs and $2,000 per month in fixed costs. Celaneo sells 30
Celaneo Avionics makes aircraft instrumentation. Its basic navigation radio requires $80 in variable costs and $2,000 per month in fixed costs. Celaneo sells 30 radios per month. If the company further processes the radio, to enhance its functionality, it will require an additional $25 per unit of variable costs, plus an increase in fixed costs of $800 per month. The current sales price of the radio is $260. The CEO wishes to improve operating income by $1,000 per month by selling the enhanced version of the radio. In order to meet this target, the sales price to be charged for the enhanced product is A. $345 per unit B. $85 per unit C. $285 per unit D. $365 per unit
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