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Nordin Avionics makes aircraft instrumentation. Their basic navigation radio requires $80.00 in variable costs and requires $2000 per month in fixed costs. If they process the radio further to enhance its functionality, it will require an additional $25 per unit of variable costs, but no change to the fixed costs. The marketing manager believes they would be able to boost their price of the radio from $260 to $280. If they do so, how would the change affect operational income?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9982700

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