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Business, 05.05.2020 14:53 idunn

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 .

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