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Route Two Tire Company makes a special kind of racing tire. Variable costs are $200 per unit, and fixed costs are $32,000 per month. Route
Route Two Tire Company makes a special kind of racing tire. Variable costs are $200 per unit, and fixed costs are $32,000 per month. Route Two sells 400 units per month at a sales price of $ 300. 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 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.)
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