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Victory Tire Company makes a special kind of racing tire. Variable costs are $ 2 2 0 per unit, and fixed costs are $ 2

Victory Tire Company makes a special kind of racing tire. Variable costs are $ 220 per unit, and fixed costs are $ 20000 per month. Victory sells 500 units per month at a sales price of $ 310. If the quality of the tire is upgraded, the company believes it can increase the sales price to $ 350. If so, the variable cost will increase to $ 230 per unit, and the fixed costs will remain the same. If Victory decides to upgrade, how will it affect operating income?
A.
Operating income will increase by $ 5000.
B.
Operating income will increase by $ 15000.
C.
Operating income will decrease by $ 5000.
D.
Operating income will decrease by $ 15000.

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