Odin Avionics Makes Aircraft Instrumentation

question 145

Multiple Choice

Odin Avionics makes aircraft instrumentation.Its basic navigation radio requires $60 in variable costs and $4,000 per month in fixed costs.Odin sells 10 radios per month.If the company further processes the radio,to enhance its functionality,it will require an additional $28 per unit of variable costs,plus an increase in fixed costs of $280 per month.The current sales price of the radio is $300.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 $356
• B) at a sales price of $300
• C) at a sales price lower than $300
• D) at a sales price of $388

---

Definitions:

Reasonable Duration

A length of time that is considered fair and appropriate under given circumstances or legal standards.

Physical Barriers

Obstacles that prevent or hinder movement or access, often relevant in discussions of accessibility and security.

Physical restraint

The use of physical force to limit a person's movements or actions, often for safety or control.

Probable Cause

A reasonable ground for belief, based on facts and circumstances, that a crime has been or is being committed, often used as justification for issuing a warrant.