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Victory company makes a special kind of rangtre. Variable costs are $220 per unit and foed costs are $20,000 per month victory sells 600 unts
Victory company makes a special kind of rangtre. Variable costs are $220 per unit and foed costs are $20,000 per month victory sells 600 unts per month at a sales price of $300. If the quality of the tire is upgraded, the company believes it can increase the sales price to $325. If so, the variable cost will increase to $240 per unit, and the fixed costs will remain the same. If Victor decides to upgrade, how w it affect operating income? Operating income will increase by $12.000 Operating income will decrease by $12,000. Operating income will increase by $3000. Operating income will decrease by $3000
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