Nordic Avionics Makes Aircraft Instrumentation

Nordic Avionics makes aircraft instrumentation.Its basic navigation radio requires $80 in variable costs and requires $2,000 per month in fixed costs.If the company upgrades the radio further to enhance its functionality,it will require an additional $25 per unit of variable costs,plus an increase in fixed costs of $800 per month.The marketing manager believes that they would be able to boost the price of the radio from $260 to $300.Nordic sells 30 radios per month.If Nordic decides to produce the improved version of the radio,what would the impact be on monthly operating income?

A) It would increase by $1,050.
B) It would increase by $250.
C) It would decrease by $350.
D) It would decrease by $750.