Odin Avionics Makes Aircraft Instrumentation

question 168

Multiple Choice

Odin Avionics makes aircraft instrumentation.Its basic navigation radio requires $90 in variable costs and $2,000 per month in fixed costs.Odin sells 30 radios per month.If the company further processes the radio,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 sales price of the radio is $260.The marketing manager is sure that Odin can charge a higher sales price for the improved version.At what sales price level would the new,improved radio begin to improve operating earnings? (Round to the nearest whole dollar. )

• A)at a sales price higher than $312
• B)at a sales price of $260
• C)at a sales price lower than $260
• D)at a sales price of $375

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Definitions:

Traits

Relatively stable tendencies of individuals.

Motives

The psychological entities that drive us to behave in ways that will help us meet our goals.

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A person's subjective emotional judgement regarding their self-value.

Confidence

The feeling or belief that one can rely on someone or something; self-assurance.