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Supersonic Tire Company makes a special kind of racing tire. Variable costs are $210 per unt, and fixed conts are $35,000 per morith: Supersonic sels
Supersonic Tire Company makes a special kind of racing tire. Variable costs are $210 per unt, and fixed conts are $35,000 per morith: Supersonic sels 400 units per month at a sales price of \$310. If the qualty of the tire in upgrodod, the campany believes it can increase the price to $330. If so, the variable cost will increase to $220 per unit, and the fixed costs wil rise by 20%. If 5copersonic decides to upgrade, how will operating income be affected? A. Operating income wili increase by $8,000 B. Operating income wil decrease by $3,000 c. Operating income wil decrease ty $8.000. D. Operating income will increase by $20
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