Verdant Avionics makes aircraft instrumentation
Their basic navigation radio requires $140 in variable costs and requires $3,000 per month in fixed costs. If it processes the radio further to enhance its functionality, it will require an additional $30 per unit of variable costs and $300 per month in fixed costs. The marketing manager believes the sales price of the radio can be increased from $250 to $280. In making this decision, the amount of additional fixed costs per month is a relevant cost.
Indicate whether the statement is true or false
TRUE
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A) are constant over time. B) include a default premium. C) are equal to the real yields. D) include an inflation premium.
Many banks offer free checking accounts. What may be the opportunity costs associated with free checking?
A) Low interest rates B) Overdraft protection C) High minimum balance requirements D) Both A and C are correct answers.