How to solve this question on excel using excel formulas? The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $60,000. Thevariable cost or recapping 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 thebreak-even volume as a percentage of that capacity.Fixed costVariable costIn the Formula, box type in the formula in words that you usedto calculate the answer.Price=a)Formula:Formula:Formula:TCTRProfitper yearb)tires per yearFomula:c)What is the Contribution Margin?Fomula:d)capacity161738% of capacity-Fomula:3940414243

Answer a: Total Revenue=$300,000Total Cost=$108,000+$60,000=$168,000Profit=$132,000 Since we only…

The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $60,000. The variable cost or recapping 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.