The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $65,000. The variable cost of...

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The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $65,000. The variable cost of recapping a tire is $7.5. The company charges$25 to recap a tire.

 

a. For an annual volume of 15, 000 tire, determine the total cost, total revenue, and profit.

 

b. Determine the annual break-even volume for the Retread Tire Company operation.

 

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