Purchase Solution

Graphical illustration of breakeven analysis

Not what you're looking for?

Ask Custom Question

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.
A. Formula is : Total cost = Fixed Cost + Total Variable Cost * Fixed Cost-60,000
*Total Variable Cost= 108,000 ( 9 x 12,000)
*Total Cost= 168,000 (108,000+60,000)
* Profits- 132,000 (300,000 -168,000)
*Total Revenue- 300,000 ( 12,000 x 25)
Answer: The total cost is 168,000, the total revenue is 300,00, and the profit is 132,000.

B. Determine the annual break even volume for Retread Tire Company operation.
B. Answer: The break even volume for retread Tire Company operation is 3750 because you subtract 9-25, then divide it by 60,000= 3750. So the break even volume is 3750.

I have all of that- but this is the problem below I need the answer to:
Graphically illustrate the break even volume for the Retread Tire Company determined in the problem above.

Purchase this Solution

Solution Summary

This posting graphically illustrates the breakeven analysis for Retread Tire Company

Purchase this Solution


Free BrainMass Quizzes
Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.