Route Two Tire Company makes a special kind of racing tire. Variable costs are $200...
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Route Two Tire Company makes a special kind of racing tire. Variable costs are $200 per unit, and fixed costs are $31,000 per month. Route Two sells 400 units per month at a sales price of $300. The company believes that it can increase the price if the tire quality is upgraded. If so, the variable cost will increase to $230 per unit, and the fixed costs will rise by 50%. The CEO wishes to increase the company's operating income by 15%. Which sales price level would give the desired results? (Round your answer to the nearest cent.) OA. $990 per unit O B. $278 per unit O C. $372 per unit O D. $323 per unit
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