Mickey Tire Company makes a special kind of racing tire. Variable costs are $225 per...
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Mickey Tire Company makes a special kind of racing tire. Variable costs are $225 per unit, and fixed costs are $30,000 per month. Mickey sells 500 units per month at a sales price of S310. If the quality of the tire is upgraded, the company believes it can increase the sales price to S349. I s variable cost will increase to 234 per unit, and the fixed costs ill ise by 50%, Mickey decides to upgrade how ill operating c e be affected O A. Operating income will decrease by $4,500. O B. Operating income will decrease by $15,000 O C. Operating income will increase by $4,500 O D. Operating income will remain the same. Mickey Tire Company makes a special kind of racing tire. Variable costs are $225 per unit, and fixed costs are $30,000 per month. Mickey sells 500 units per month at a sales price of S310. If the quality of the tire is upgraded, the company believes it can increase the sales price to S349. I s variable cost will increase to 234 per unit, and the fixed costs ill ise by 50%, Mickey decides to upgrade how ill operating c e be affected O A. Operating income will decrease by $4,500. O B. Operating income will decrease by $15,000 O C. Operating income will increase by $4,500 O D. Operating income will remain the same
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