If the maximum operating capacity of the Retread Tire Company, as described in Problem 2, is 8,000
Question:
If the maximum operating capacity of the Retread Tire Company, as described in Problem 2, is 8,000 tires annually, determine the break-even volume as a percentage of that capacity.
Data From Problem 2:
The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $60,000. The variable cost of recapping a tire is $9. The company charges $25 to recap a tire.
a. For an annual volume of 12,000 tires, determine the total cost, total revenue, and profit.
b. Determine the annual break-even volume for the Retread Tire Company operation.
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a The total cost fixed cost variable cost 60000 9 x 12000 8...View the full answer
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