Auto Tires has been in the tire business for four years. It rents a building but owns all of its equipment. All employees are paid a fixed salary except for the busy season (April-June), when temporary help is hired by the hour. Utilities and other operating charges remain fairly constant during each month except those in the busy season.
Selling prices per tire average $75 except during the busy season. Because a large number of customers buy tires prior to winter, discounts run above average during the busy season. A 15% discount is given when two tires are purchased at one time. During the busy months, selling prices per tire average $60.
The president of Auto Tires is somewhat displeased with the company's management accounting system because the cost behavior patterns displayed by the monthly breakeven charts are inconsistent; the busy months' charts are different from the other months of the year. The president is never sure if the company has a satisfactory margin of safety or if it is just above the breakeven point.
Required:
| a. | Why might it be difficult to use CVP in this situation? |
| b. | How can the information be presented in a better format for the president? |
Deciduous and permanent teeth. (A) The deciduous teeth, with the age of eruption given in months; (B
Levallois points and flakes from Kapthurin, Kenya date to between 200,000 and 280,000 years ago.
Cranial capacity has increased approximately fourfold over the last 3.5 million years of hominin evo
Business Math
Business Math Question
Earth 200 Million Years Ago