What is breakeven level in tires assuming variable costs

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Rollsrite Tires, Inc. sells tires to tire stores for an average of $135 each. The variable costs of each tire are $90 and monthly fixed manufacturing costs total $45,000. Other monthly fixed costs of the company total $36,000.

1. What is the breakeven level in tires?

2. What is the margin of safety in dollars assuming sales total $270,000?

3. What is the breakeven level in tires assuming variable costs increase by 20 percent?

4. What is the breakeven level in tires assuming the selling price goes up by 5 percent, fixed manufacturing costs decline by 8 percent and other fixed costs decline by $1,400?

Reference no: EM133399955

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