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Nordic Avionics makes aircraft instrumentation. Its basic navigation radio requires $70 in variable costs and $3,000 per month in fixed costs. Further processing the radio, to enhance its functionality, will require an additional $26 per unit of variable costs but no change to the fixed costs. The marketing manager believes that the company would be able to increase the sales price from $270 to $290. If Nordic decides to further process the product, operating income would ________.
A) remain the same
B) increase by $96 per unit
C) increase by $26 per unit
D) decrease by $6 per unit
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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