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Route Two Tire Company makes a special kind of racing tire. Variable costs are $220 per unit, and fixed costs are $30,000 per month. Route
Route Two Tire Company makes a special kind of racing tire. Variable costs are $220 per unit, and fixed costs are $30,000 per month. Route Two sells 500 units per month at a sales price of S300. The company believes that it can increase the price if the tire quality is upgraded. If so, the variable cost will increase to $230 per unit, and the fixed costs will rise by 50%. The CEO wishes to increase the company's operating income by 10%, which sales price level would give the desired results? (Round your answer to the nearest cent.) OA. $320.00 per unit O B. S990.00 per unit O c. $342.00 per unit O D. $280.00 per unit
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