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Blue Streak Company makes a special kind of racing tire. Variable costs are $340, and fixed costs are $35,000per month. Blue Streak sells 600 units
Blue Streak Company makes a special kind of racing tire. Variable costs are $340, and fixed costs are $35,000per month. Blue Streak sells 600 units per month at a sales price of $410. If Blue Streak upgrades the quality of the tire, management believes that the sales price can be increased to $450. If so, the variable cost will increase to $350, and the fixed costs will rise by 30%. The CEO wishes to increase his operating income by at least 22%. If the company decides to upgrade the product, the CEO will reach his goal.???? Help
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