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Starforce Avionics makes aircraft instrumentation. Its basic navigation radio requires $ 6 0 in variable costs and $ 2 , 0 0 0 per month
Starforce Avionics makes aircraft instrumentation. Its basic navigation radio requires $ in variable costs and $ per month in fixed costs. Further processing the radio, to enhance its functionality, will require an additional $ 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 $ to $ If Starforce decides to further process the product, operating income would:
A increase by $ per unit
B remain the same
C decrease by $ per unit
D increase by $ per unit
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