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:

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A model outlining the phases teams typically go through: forming, storming, norming, performing, and adjourning.

Disband

The process of formally dissolving a group, organization, or assembly.

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An individual who holds a higher position or rank, often having authority over others.

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The process by which an individual identifies, analyzes, and finds solutions to issues on a personal level, often through critical thinking and creativity.