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How will operating income be? affected

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Question 1: Supersonic Tire Company makes a special kind of racing tire. Variable costs are? $210 per? unit, and fixed costs are? $42,000 per month. Supersonic sells 400 units per month at a sales price of? $320. If the quality of the tire is? upgraded, the company believes it can increase the price to? $350. If? so, the variable cost will increase to? $220 per? unit, and the fixed costs will rise by? 20%. If Supersonic decides to? upgrade, how will operating income be? affected?

Reference no: EM132523534

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