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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
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 $310. If the quality of the tire is upgraded, the company believes it can increase the sales price to $349. If so, the variable cost will increase to $234 per unit, and the fixed costs will rise by 50%. If Mickey decides to upgrade, how will operating income be affected? O A. Operating income will decrease by $15,000. B. Operating income will increase by $4,500 O c. Operating income will decrease by $4,500. OD. Operating income will remain the same
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