Celaneo Avionics makes aircraft instrumentation. Its basic navigation radio requires $60 in variable costs and $4,000 per month in fixed costs. Celaneo sells 20 radios per month. If the company further processes the radio, to enhance its functionality, it will require an additional $40 per unit of variable costs, plus an increase in fixed costs of $500 per month. The current sales price of the radio is $280.The CEO wishes to improve opertaing income by $1,100 per month by seloling the enhanced version of the radio. In order to meet this target, the sales price to be charged for the enhanced product is .

$400 per unit

Explanation:

Variable cost $60 * 20 units = 1200

Fixed cost = $4000

Total current cost is $5,200

Total sales is 280 * 20 = $5,600

net income (Sales - Total cost) = $400

If CEO wants to increase net income by $1,100 the

Net income = Total sales - Variable cost -Fixed cost

Net income $1,500 = x - ($60 + $40) * 20 units - $4,000+ $500

Total sales = $1,500 + $2,000 + $4,500

Total sales = $8,000

Sales price per unit = $8,000 / 20 units

Sales price per unit = $400 / unit

answertop managers;

answer: b. false

the staff is a set of five horizontal lines and four spaces which represent a different musical pitch. the lines and the spaces are numbered from bottom to top, the bottom line is the first line and the fifth line is the line on the top. the notes on the top of the staff (fifth line) have a higher pitch than a note at the bottom of the staff.