Nordin Avionics Makes Aircraft Instrumentation

question 78

Multiple Choice

Nordin Avionics makes aircraft instrumentation. Their basic navigation radio requires $80 in variable costs and requires $2,000 per month in fixed costs. If they process the radio further to enhance its functionality, it will require an additional $25 per unit of variable costs, but no change to the fixed costs. The marketing manager believes they would be able to boost their price of the radio from $260 to $280. If they do so, how would the change affect operational income?

• A) It would remain the same.
• B) It would go up by $25 per unit.
• C) It would go up by $20 per unit.
• D) It would go down by $5 per unit.

---

Definitions:

Reciprocity

A principle or practice of mutual exchange and interdependence often considered in social, economic, and ethical contexts.

Code Of Ethics

A set of principles and guidelines aimed at helping professionals conduct business honestly and with integrity.

Age Discrimination

Unfair or unequal treatment of an individual or group based on their age, especially regarding employment.