What is the break-even level in tires

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

Required -

What is the break-even level in tires?

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

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

What is the break-even level in tires, assuming the selling price goes up by 20 percent, fixed manufacturing costs decline by 10 percent and other fixed costs decline by $1500?

Reference no: EM132934833

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