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Home Q & A Board Other Fields Homework Help Business Accounting
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7 years ago
Route Two Tire Company makes a special kind of racing tire. Variable costs are $200 per unit, and fixed costs are $32,000 per month. Route Two sells 500 units per month at a sales price of $300. The company believes that it can increase the price if the tire quality is upgraded. If so, the variable cost will increase to $240 per unit, and the fixed costs will rise by 50%. The CEO wishes to increase the company's operating income by 15%. Which sales price level would give the desired results? (Round your answer to the nearest cent.)
A) $336.00 per unit
B) $377.40 per unit
C) $264.00 per unit
D) $1,020.00 per unit
Textbook 
Horngren's Financial & Managerial Accounting, The Financial Chapters

Horngren's Financial & Managerial Accounting, The Financial Chapters


Edition: 5th
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Deprecated Author
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#2
7 years ago
This was certainly a tough question, loving the expertise
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#3
7 years ago
Excellent Slight Smile
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