Malmo Avionics Makes Aircraft Instrumentation

Malmo Avionics makes aircraft instrumentation.Its basic navigation radio requires $70 in variable costs and $2,000 per month in fixed costs.Further processing the radio,to enhance its functionality,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 increase the sales price of the radio from $260 to $300.Malmo sells 30 radios per month.If Malmo decides to further process the radio,monthly operating income would ________.

A) increase by $1,200
B) increase by $3,650
C) decrease by $350
D) decrease by $3,650