Route Two Tire Company makes a special kind of racing tire. Variable costs are

$ 200$200

per unit, and fixed costs are

$ 32 comma 000$32,000

per month. Route Two sells

400400

units per month at a sales price of

$ 320$320.

The company believes that it can increase the price if the tire quality is upgraded. If so, the variable cost will increase to

$ 230$230

per unit, and the fixed costs will rise by

5050%.

The CEO wishes to increase the company's operating income by

1515%.

Which sales price level would give the desired results? (Round your answer to the nearest cent.)

A.

$ 1 comma 056.00$1,056.00

per unit

B.

$ 280.00$280.00

per unit

C.

$ 396.00$396.00

per unit

D.

$ 360.00$360.00

per unit