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Starforce Avionics makes aircraft instrumentation. Its basic navigation radio requires $80 in variable costs and $3000 per month in fixed costs. Further processing the radio,
Starforce Avionics makes aircraft instrumentation. Its basic navigation radio requires $80 in variable costs and $3000 per month in fixed costs. Further processing the radio, to enhance its functionality, will require an additional $26 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 $270 to $290. If Starforce decides to further process the product, operating income would Select one: A. decrease by $6 per unit B. increase by $26 per unit C. increase by $106 per unit D. remain the same
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