Mickey Tire Company makes a special kind of racing tire. Variable costs are $230 perunit, and fixed costs are $20,000 per month. Mickey sells 300 units per month at a sales price of $350. If the quality of the tire isupgraded, the company believes it can increase the sales price to $380. Ifso, the variable cost will increase to $250 perunit, and the fixed costs will rise by 15%. If Mickey decides toupgrade, how will operating income beaffected?