Nordin Avionics Makes Aircraft Instrumentation

question 158

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

Calcium Chloride

A chemical compound used in various applications, including as a de-icing agent, in food preservation, and in laboratory settings to provide a source of calcium ions.

Extra Electrons

Additional electrons that surpass the baseline number expected in an atom or molecule, often leading to negative charge and chemical reactivity.

Outermost Shell

Refers to the outermost layer of electrons surrounding an atomic nucleus.

Atomic Number

The atomic number is the number of protons found in the nucleus of an atom, determining the chemical properties of the element and its place in the periodic table.