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Author Question: Tom's Tire Tower, Inc., sells tires for $110. The unit variable cost per tire is $85. Fixed costs ... (Read 250 times)

Lobcity

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Question 1

In 2017, Craylon Company has sales of $1,000,000, variable costs of $250,000, and fixed costs of $200,000. In 2018, the company expects annual property taxes to decrease by $15,000.

Required:
a.Calculate operating income and the breakeven point for 2017.
b.Calculate the breakeven point for 2018. 


Question 2

Tom's Tire Tower, Inc., sells tires for $110. The unit variable cost per tire is $85. Fixed costs total $475,000.

Required:
a.What is the contribution margin per tire?
b.What is the breakeven point in tires?
c.How many tires must be sold to earn a pretax income of $450,000?
d.What is the margin of safety, assuming 33,000 tires are sold? 


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Marked as best answer by Lobcity on Mar 6, 2021

kxciann

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Lobcity

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Reply 2 on: Mar 6, 2021
Thanks for the timely response, appreciate it


sailorcrescent

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Reply 3 on: Yesterday
Wow, this really help

 

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