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) $1,020.00 per unit
B) $264.00 per unit
C) $336.00 per unit
D) $377.40 per unit

D .D)
Sales revenue $150,000
Less: Variable cost 100,000
Less: Fixed cost 32,000
Operating income $18,000

Target operating income($18,000 x 115 / 100 ) $20,700
Add: Increased variable cost 120,000
Add: Increased fixed cost 48,000
Total cost $188,700
No. of units manufactured per month 500
Sales price to be charged ($188,700 / 500 ) $377.40