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dxpayne dxpayne
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6 years ago
Auto Tires Inc. sells tires to service stations for an average of $45 each. The variable costs of each tire are $30 and monthly fixed manufacturing costs total $15,000. Other monthly fixed costs of the company total $12,000.

Required:
a.   What is the break-even level in tires?
b.   What is the margin of safety assuming sales total $90,000?
c.   What is the break-even level in tires assuming variable costs increase by 20 percent?
d.   What is the break-even level in tires assuming the selling price goes up by 10 percent, fixed manufacturing costs decline by 10 percent and other fixed costs decline by $150?
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
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pachopacho
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dxpayne Author
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6 years ago
Just got PERFECT on my quiz
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Brilliant ツ
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This helped my grade so much Perfect
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