Route Two Tire Company Makes a Special Kind of Racing

Route Two Tire Company makes a special kind of racing tire.Variable costs are $200 per unit,and fixed costs are $30,000 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 25%.The CEO wishes to increase the company's operating income by 30%.Which sales price level would give the desired results? (Round your answer to the nearest cent.)

A) $1,020.00 per unit
B) $260.00 per unit
C) $340.00 per unit
D) $367.00 per unit