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content area top Part 1 Pegasus Avionics makes aircraft instrumentation. Its basic navigation radio requires $80 in variable costs and $2,000 per month in fixed
content area top Part 1 Pegasus Avionics makes aircraft instrumentation. Its basic navigation radio requires $80 in variable costs and $2,000 per month in fixed costs. Pegasus 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 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 earnings? (Round to the nearest whole dollar.)
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