Question: (a) A Ltd sells tires for $110. The unit variable cost per tires is $85. Fixed costs total $475,000. Required i. What is the contribution

(a) A Ltd sells tires for $110. The unit variable cost per tires is $85. Fixed costs total $475,000. Required i. What is

(a) A Ltd sells tires for $110. The unit variable cost per tires is $85. Fixed costs total $475,000. Required i. What is the contribution margin per tires? ii. What is the breakeven point in tires? iii. How many tires must be sold to earn income $450,000 iv. What is the margin of safety, assuming 33,000 tires are sold? (15 marks) (b) Explain the term 'Cost-Volume profit analysis' with numerical examples to show how it affects the profits. (a) A Ltd sells tires for $110. The unit variable cost per tires is $85. Fixed costs total $475,000. Required i. What is the contribution margin per tires? ii. What is the breakeven point in tires? iii. How many tires must be sold to earn income $450,000 iv. What is the margin of safety, assuming 33,000 tires are sold? (15 marks) (b) Explain the term 'Cost-Volume profit analysis' with numerical examples to show how it affects the profits

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