Victory Tires Company Makes a Special Kind of Racing Tire

Victory Tires Company makes a special kind of racing tire.Variable costs are $220,and fixed costs are $30,000 per month.Victory sells 500 units per month at a price of $300.The company believes that it can boost the price if the tire quality is upgraded.If so,the variable cost will go up to $230 and the fixed costs will rise by 50%.The CEO wishes to increase the company's operating income by 25%.Which price level would give the desired results?

A) $330 per unit
B) $370 per unit
C) $320 per unit
D) $345 per unit