Determine the annual break even volume


Discuss the below:

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 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 Retread Tire Company operation.

 

 

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Accounting Basics: Determine the annual break even volume
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