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starforce avionics makes aircraft instrumentation. its basic navigation radio requires​ $60 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 starforce decides to further process the​ product, operating income​ would: question content area bottom part 1 a. decrease by​ $6 per unit b. remain the same c. increase by​ $86 per unit d. increase by​ $26 per unit

Respuesta :

If Starforce decides to further process the​ product, operating income​ would decrease by​ $6 per unit. Though there is increase in Gross Income per unit.

As we know that,

Operating Income = Gross Income – Operating Expenses

Increase in Gross Income per unit is :

$290 - $270=  $20

Given, there is an additional​ $26 per unit of variable costs but no change to the fixed costs to further process the​ product.

Change in Operating Income = Change in Gross Income – Change in Operating Expenses

=  $20- $26

= - $6

Negative sign indicates a decrease in the Operating Income.

Hence, operating income​ would decrease by​ $6 per unit.

Learn more on Operating Income here:

https://brainly.com/question/28524695

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