Route Two Tire Company makes a special kind of racing tire. Variable costs are $ 2 2
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Question:
Route Two Tire Company makes a special kind of racing tire. Variable costs are $ per unit, and fixed costs are $ per month. Route Two sells units per month at a sales price of $ The company believes that it can increase the price if the tire quality is upgraded. If so the variable cost will increase to $ per unit, and the fixed costs will rise by The CEO wishes to increase the company's operating income by Which sales price level would give the desired results? Round your answer to the nearest cent.
A $ per unit
B $ per unit
C $ per unit
D $ per unit
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