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:

Depersonalization

A psychological phenomenon involving a sense of detachment from one's own body, thoughts, feelings, or sense of identity, often described as feeling like an outside observer to one’s life.

Derealization

A mental state where the world around feels unreal or distant; often a symptom of anxiety or dissociative disorders.

Dissociative Amnesia

A disorder characterized by temporary memory loss that cannot be attributed to a typical neurological condition, often due to psychological stress or trauma.

Temporal Lobe Epilepsy

A neurological condition characterized by seizures originating in the temporal lobe of the brain, affecting emotions and behaviors.