Viper Avionics Makes Aircraft Instrumentation

question 183

Multiple Choice

Viper Avionics makes aircraft instrumentation.Its basic navigation radio requires $80 in variable costs and $2000 per month in fixed costs.Further processing the radio,to enhance its functionality,will require an additional $25 per unit of variable costs,plus an increase in fixed costs of $800 per month.The marketing manager believes that they would be able to increase the sales price of the radio from $260 to $300.Viper sells 30 radios per month.If Viper decides to further process the radio,monthly operating income would ________.

• A) increase by $1200
• B) increase by $3950
• C) decrease by $350
• D) decrease by $3950

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Definitions:

Methane Molecule

A simple hydrocarbon with the chemical formula CH4, consisting of one carbon atom bonded to four hydrogen atoms, and is the primary component of natural gas.

Polarity

A property of molecules with distinct oppositely charged ends, resulting from an uneven distribution of electrons.

Solvents

Substances that dissolve a solute, resulting in a solution; usually liquid but can be gas or solid.

Polarity

A characteristic of molecules with uneven distribution of charges, resulting in regions of partial positive and negative charges.