Explore BrainMass

Retread Tire Company Break Even

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.

Graphically illustrate the break even volume for the Retread Tire Company.

Solution Summary

The solution illustrates and calculates the break even point for the Retread Tire Company.