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Route Two Tire Company makes a special kind of racing tire. Variable costs are $220.00 per unit, and fixed costs are $30,000 per month. Route

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Route Two Tire Company makes a special kind of racing tire. Variable costs are $220.00 per unit, and fixed costs are $30,000 per month. Route Two sells 500 units per month at a sales price of $320.00. The company believes that it can increase the price if the tire quality is upgraded. If so, the variable cost will increase to $230.00 per unit, and the fixed costs will rise by 25%. The CEO wishes to increase the company's operating income by 35%. Which sales price level would give the desired results? (Round your answer to the nearest cent.) A. $1,056.00 per unit B. $360.00 per unit C. $280.00 per unit D. $359.00 per unit

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