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Question
Victory Company makes a special kind of racing tire. Variable costs are $220, and fixed costs are $30,000 per month. Victor sells 500 units per month at a price of $300. If Victory upgrades the quality of the tire, they believe they can boost the price. If so, the variable cost will go up to $230 and the fixed costs will rise by 50%. The CEO wishes to increase his operational income by 25%. What price level would give the desired results?
A) $330 per unit
B) $370 per unit
C) $320 per unit
D) $345 per unit
Answer
This answer is hidden. It contains 156 characters.
Related questions
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A) chart of accounts.
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