Tom's Tyres Inc

question 170

Essay

Tom's Tyres Inc. ,sells tyres for $110.The unit variable cost per tyre is $85.Fixed costs total $475 000.
Required:
a.What is the contribution margin per tyre?
b.What is the break-even point in tyres?
c.How many tyres must be sold to earn a pre-tax profit of $300 000?
d.What is the margin of safety,assuming 23 000 tyres are sold?
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Definitions:

Human Brain

The central organ of the human nervous system, responsible for processing sensory information, coordinating movement, and facilitating cognition and emotions.

Cerebrum

The largest part of the brain, responsible for voluntary activities, sensation, thought, reasoning, and memory.

Cerebellum

A part of the brain located at the back of the skull that regulates coordination and balance.

Brainstem

The lower part of the brain, connecting the cerebrum with the spinal cord, and responsible for controlling basic life functions such as breathing and heartbeat.