Viper Avionics Makes Aircraft Instrumentation

question 183

Multiple Choice

Viper Avionics makes aircraft instrumentation.Its basic navigation radio requires $80 in variable costs and $2000 per month in fixed costs.Further processing the radio,to enhance its functionality,will require an additional $25 per unit of variable costs,plus an increase in fixed costs of $800 per month.The marketing manager believes that they would be able to increase the sales price of the radio from $260 to $300.Viper sells 30 radios per month.If Viper decides to further process the radio,monthly operating income would ________.

• A) increase by $1200
• B) increase by $3950
• C) decrease by $350
• D) decrease by $3950

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Definitions:

Myosarcoma

A malignant tumor derived from muscle tissue, often aggressive and requiring early treatment.

Choriocarcinoma

A fast-growing cancer that occurs in a woman's uterus (the womb), typically following a pregnancy or abortion and originates from cells that would have become the placenta.

Malignant

Describes cells or tumors that are cancerous and can spread to other parts of the body.

Dedifferentiation

The process by which cells lose their specialized (differentiated) features and revert to a more primitive, unspecialized form.