Nordic Avionics Makes Aircraft Instrumentation

question 91

Multiple Choice

Nordic Avionics makes aircraft instrumentation.Its basic navigation radio requires $80 in variable costs and requires $2,000 per month in fixed costs.Nordic sells 30 radios per month.If the company upgrades 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 marketing manager is sure that they can charge a higher price for the improved version.At what price level would the new,improved radio begin to improve operational earnings? (Round to nearest whole dollar.)

• A)at a price of higher than $312
• B)at a price of $309
• C)at a price of lower than $420
• D)at a price of $295

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Definitions:

Positive Feeling

Emotions or sentiments that are uplifting, joyous, or fulfilling.

Accomplishment

The achievement of a goal or the completion of a task successfully.

Compensation Structure

The system and policies an organization uses to determine how employees are paid and rewarded for their work, affecting motivation and retention.

Job's Worth

The value or importance of a job, often determined by factors such as skill level required, responsibilities, and impact on the organization.