Nordic Avionics Makes Aircraft Instrumentation

question 26

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. Nordic sells 30 radios per month. 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 current price of the radio is $260. The CEO wishes to improve operating income by $1,000 per month by selling the enhanced version of the radio. In order to hit his target, the price to be charged for the enhanced product is:

• A)$212 per unit
• B)$345 per unit
• C)$440 per unit
• D)$367 per unit

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Definitions:

Satisfaction

The feeling of pleasure or fulfillment that comes from achieving a goal, need, or expectation.

Cohabitation

The state of living together and having a sexual relationship without being married.

Trial Marriage

A temporary marital arrangement intended to test the compatibility of a couple before formal marriage.

Sternberg's

Refers to theories developed by psychologist Robert Sternberg, especially his triangular theory of love or his theory of intelligence.