Nordic Avionics Makes Aircraft Instrumentation

question 36

Multiple Choice

Nordic 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, plus an increase in fixed costs of $800 per month. The marketing manager believes that they would be able to boost their price of the radio from $260 to $300. Nordic sells 30 radios per month. If they decide to process further, what would the impact be on monthly operating income?

• A)It would increase by $1,050.
• B)It would increase by $250.
• C)It would decrease by $350.
• D)It would decrease by $750.

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Definitions:

Prefrontal Cortex

The anterior part of the frontal lobes of the brain, involved in complex cognitive behavior, decision making, and moderating social behaviour.

Brodmann's Areas

Regions of the cerebral cortex defined by their cytoarchitectonic characteristics and associated with different brain functions.

Reticular Activating System

a network of neurons in the brainstem involved in regulating wakefulness and sleep-wake transitions.

Lucid Dreaming

A state of dreaming where the dreamer is aware that they are dreaming and sometimes able to control the dream narrative.