document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=903667>Question 903667</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 1* The Retread Tire Company recaps tires. The fixed annual cost of the recapping opration is $60,000<BR>\n" );
document.write( "The variable cost of recapping a tire is $9.<BR>\n" );
document.write( "The company charges $25 to recap a tire.<BR>\n" );
document.write( "a. For an annual volume of 12,000 tires, determine the total cost, total revenue, and profit.<BR>\n" );
document.write( "b. Deternine the annual break-even volume for the Retead Tire Company operation.\r<BR>\n" );
document.write( "\n" );
document.write( "2* If the Retread Tire Company in the above problem changes its pricing for recapping a tire from $25 to $31, what effect will the change have on the break-even volume? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #548205 by </B><A HREF=/tutors/aboutme.mpl?userid=richwmiller><B>richwmiller(17219)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=richwmiller><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=richwmiller><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=548205\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 1a)ar=25*t<BR>\n" );
document.write( "ar=25*12k=300k<BR>\n" );
document.write( "ac=9*t<BR>\n" );
document.write( "ac=9*12k+60k=168k<BR>\n" );
document.write( "ap=ar-ac\r<BR>\n" );
document.write( "\n" );
document.write( "ap=25*12k-9*12k-60k<BR>\n" );
document.write( "ap=300k-168k<BR>\n" );
document.write( "ap=132l<BR>\n" );
document.write( "1b)<BR>\n" );
document.write( "25t=60000+9*t<BR>\n" );
document.write( "16t=60000<BR>\n" );
document.write( "be t=3750<BR>\n" );
document.write( "2)31t=60000+9*t <BR>\n" );
document.write( "22t=60000<BR>\n" );
document.write( "t=2727<BR>\n" );
document.write( "The volume needed to break even goes down when the selling price goes up to $31\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );