The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $60,000. The variable c a tire is $9.00. 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 the Retread Tire Company operation. c) Determine the contribution margin. d) If the maximum operating capacity of the Retread Tire Company, is 8,000 tires annually, determine the break-ev percentage of that capacity.

The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $60,000. The variable c a tire is $9.00. 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 the Retread Tire Company operation. c) Determine the contribution margin. d) If the maximum operating capacity of the Retread Tire Company, is 8,000 tires annually, determine the break-ev percentage of that capacity.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Sunland Orthotics Company distributes a specialized ankle support that sells for $ 40. The company’s variable costs are $ 30 per unit; fixed costs total $ 320,000 each year. Calculate contribution margin ratio. Contribution margin ratio =25% If sales increase by $ 52,000 per year, by how much should operating income increase? (Use the rounded contribution margin ratio calculated in the previous part.) Change in operating income?
2. An audio equipment manufacturer produced and sold 725 sound systems and made a net income of $50, 000 last year, with a total revenue of $1, 015, 000. The manufacturer's break-even volume is 600 units. a. Calculate the selling price of each sound system. b. Calculate the variable costs for each sound system. c. Calculate the fixed costs per year.
An annual fixed operating cost of P10,000,000 is incurred by a Auto Devices Manufacturing Company. Each device costs P1,375 to create and sells for P4,500. What is the annual break-even sales units for the manufacturer?
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A motor company needs vital infomation, for calculating the cost of running a motor truck per tonne-kms. Driver expenses is S1800 per month, cleaner sálary is $1260 per month, diesel& oil expenses are $0.90 per km. Then repair with maintenance was $1350 per month. Depreciation charges was 23,400/year/month, other expenses were $1300 per month. The day of week were Monday it runs 350kms carries 8.5 tons, Tuesday it runs 300kms carries 7tons, Wednesday it runs 250kms and carries 6.5tons, Thursday it runs 170 kms and carries 9 tons, Friday it runs 290kms and carries 7.5tons and finally on Saturday it runs 215 kms and carries 6.5 tons. Take five weeks for calculation. Calculate total over head only. 2949 5 2898.7 3878.7 2887.6
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ChimneySweep provides cleaning services for residential chimneys and fireplaces. The cleaning service requires $35 in variable costs for cleaning materials. The fixed costs of labor, the company’s truck, and administrative support are $165,000 per year. ChimneySweep averages 100 service calls per month. What is the average cost per cleaning service call? Round your answer to 2 decimal places.
Seabold Interiors sold 18,400 yards of wallpaper last year at a contributionmargin of $3.50 per yard and incurred $49,400 in total fixed costs. This year, contribution margin per yard is expected to increase to $4, and fixed costs are expected to increase to $58,000. How many units must be sold this year to earn the same operating income as was earned last year? (Hint: Use the expanded contribution margin model described in this chapter.)a. 16,900.b. 17,500.c. 18,250.d. 20,200.e. None of the above.
Finley Corporation has monthly fixed costs of $67,000. It sells two products for which it has provided the following information. Contribution Sales Price Product 1 Product 2 $15 20 Margin $9 4 a. What total monthly sales revenue is required to break even if the relative sales mix is 30 percent for Product 1 and 70 percent Product 2? (Hint: Determine the contribution margin ratio for each product.) (Round your answer to the nearest dollar amount.) b. What total monthly sales revenue is required to earn a monthly operating income of $16,000 if the relative sales mix is 20 perce for Product 1 and 80 percent for Product 2? (Round your answer to the nearest dollar amount.) Answer is complete but not entirely correct. a. Break even sales revenue $ 190,625 b. Target sales revenue $275,000 B

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