Starforce Avionics Makes Aircraft Instrumentation

question 144

Multiple Choice

Starforce Avionics makes aircraft instrumentation.Its basic navigation radio requires $80 in variable costs and $3000 per month in fixed costs.Further processing the radio,to enhance its functionality,will require an additional $26 per unit of variable costs but no change to the fixed costs.The marketing manager believes that the company would be able to increase the sales price from $270 to $290.If Starforce decides to further process the product,operating income would ________.

• A)remain the same
• B)increase by $26 per unit
• C)increase by $106 per unit
• D)decrease by $6 per unit

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Definitions:

Skeptical Audience

A group of people who are inclined to doubt or question the validity of information presented to them.

Hostile Audience

A group of listeners or spectators that is antagonistic or unfavorably disposed towards the speaker or the message being conveyed.

Direct Format

A straightforward and clear way of organizing information, often used in writing and communication, where the main point is presented first followed by supporting details.

Consensus

General agreement or collective opinion among a group of people.