Nordic Avionics makes aircraft instrumentation. Their basic navigation radio requires $80 in variable costs and requires $2,000 per month in fixed costs. Nordic sells 30 radios per month. If they process the radio further 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 price of the radio is $260. The marketing manager is sure that they can charge a higher price for the improved version. At what price level would the new, improved radio begin to improve operational earnings? Round to nearest whole dollar. Select one: a. at a price of $295 or higher b. at a price of lower than $420 c. at a price of higher than $312 d. at a price of $309 or higher Seven Seas Company manufactures 100 luxury yachts per month. Included in each yacht is a compact media center. Seven Seas manufactures media center in-house, but is considering the possibility of outsourcing that function, in order to close down some of their facilities and reduce the administrative costs. At present, the variable cost per unit is $275 and the fixed costs are $39,000 per month. Assuming that if they outsource, and the fixed costs could be eliminated entirely, at what contract rate would outsourcing pay off for Seven Seas? Round to nearest whole dollar. Select one: a. at any rate lower than $844 per unit b. at any rate lower than $665 per unit c. at any rate lower than $775 per unit d. at any rate lower than $796 per unit