Nordic Avionics makes aircraft instrumentation. Their basic navigation radio requires$80 in variable costs and requires$2,000 per month in fixed costs. If they process the radio further to enhance itsfunctionality, it will require an additional$25 per unit of variablecosts, plus an increase in fixed costs of$800 per month. The marketing manager believes that they would be able to boost their price of the radio from$260 to$300. Nordic sells 30 radios per month. If they decide to processfurther, what would the impact be on monthly operatingincome?
A.
It would decrease by$350.
B.
It would decrease by$750.
C.
It would increase by$1,050.
D.
It would increase by$250.
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