Nordic Avionics Makes Aircraft Instrumentation

question 98

Multiple Choice

Nordic Avionics makes aircraft instrumentation.Its basic navigation radio requires $70 in variable costs and $3,000 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 Nordic decides to further process the product,operating income would ________.

• A)remain the same
• B)increase by $26 per unit
• C)increase by $96 per unit
• D)decrease by $6 per unit

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Definitions:

Unintended Consequences

Outcomes that are not the ones foreseen or intended by a purposeful action, often contrary to what was originally planned.

Interest Group

An interest group is an organization that advocates for specific policies or issues, seeking to influence public policy and decision-making.

Power Factors

Elements or attributes that contribute to the effectiveness or influence of a nation, organization, or individual in achieving goals or exerting control.

Honest Leadership

A principle that emphasizes transparency, integrity, accountability, and ethical behavior in those holding positions of authority.