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How will operating income be? affected

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Question - Mickey Tire Company makes a special kind of racing tire. Variable costs are $230 per? unit, and fixed costs are $20,000 per month. Mickey sells 300 units per month at a sales price of $350. If the quality of the tire is? upgraded, the company believes it can increase the sales price to $380. If? so, the variable cost will increase to $250 per? unit, and the fixed costs will rise by 15?%. If Mickey decides to? upgrade, how will operating income be? affected?

Reference no: EM133079792

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