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What is the break-even level in tires

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Reference no: EM132934117

Question - Auto Tires Inc. sells tires to service stations for an average of $45 each. The variable costs of each tire are $30 and monthly fixed manufacturing costs total $15,000. Other monthly fixed costs of the company total $12,000.

Required -

a. What is the break-even level in tires?

b. What is the margin of safety assuming sales total $90,000?

c. What is the break-even level in tires assuming variable costs increase by 20 percent?

d. What is the break-even level in tires assuming the selling price goes up by 10 percent, fixed manufacturing costs decline by 10 percent and other fixed costs decline by $150?

Reference no: EM132934117

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