Victory Company Makes a Special Kind of Racing Tyre

Victory Company makes a special kind of racing tyre.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 tyre,they believe they can boost the price up to $340.If so,the variable cost will go up to $230 and the fixed costs will rise by 50%.If Victory decides to upgrade,how will it affect operating profit?

A) Operating profit will go up by $5000.
B) Operating profit will go down by $15,000.
C) Operating profit remains the same.
D) Operating profit will go down by $5000.