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Drift Company makes a special kind of racing tire. Variable costs are $340, and fixed costs are $35, 500 per month. Drift sells 620 units

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Drift Company makes a special kind of racing tire. Variable costs are $340, and fixed costs are $35, 500 per month. Drift sells 620 units per month at a sales price of $400. If Drift 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 $370, and the fixed costs will rise by 30%. The CEO wishes to increase his operating income by 20%. If the company decides to upgrade the product, the CEO will reach his goal

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