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Airbolt Avionics Makes Aircraft Instrumentation

question 32

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Airbolt Avionics makes aircraft instrumentation.Their basic navigation radio requires $120 in variable costs and requires $4,000 per month in fixed costs.If it processes the radio further to enhance its functionality,it will require an additional $20 per unit of variable costs and $200 per month in fixed costs.The marketing manager believes the sales price of the radio can be increased from $270 to $300.In making this decision,the amount of additional fixed costs per month is a relevant cost.


Definitions:

Single-Phase

An electrical power system that uses only two wires (one power wire and one neutral) to deliver alternating current.

Conductors

Materials or objects that allow the flow of electrical current in one or more directions.

Kilovolt-Ampere

A unit of apparent power in an electrical circuit, equivalent to 1,000 volt-amperes, commonly used in the electricity sector.

Pure Resistive Load

An electrical load that has no capacitance or inductance, resulting in current and voltage being in phase.

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