Wing Company Makes a Special Kind of Racing Tire

Wing Company makes a special kind of racing tire.Variable costs are $320,and fixed costs are $35,000 per month.Wing sells 600 units per month at a price of $400.If Wing upgrades the quality of the tire,they believe they can boost the price to $450.If so,the variable cost will go up to $350 and the fixed costs will rise by 30%.The CEO wishes to increase his operating income by 20%.If the company decides to upgrade the product according to the data above,the CEO will reach his goal.