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Alice has a tire manufacturing company that can produce a maximum of 4 0 0 0 tires per annum. The fixed costs per annum are
Alice has a tire manufacturing company that can produce a maximum of tires per annum. The fixed costs per annum are $ The variable costs are $ per tire, and the selling price per unit is $
i Calculate the number of tires she should produce and sell per year to breakeven.
ii In Alice produced and sold tires. Did she make a profit or incur a loss, and by what amount?
iii In Alice produced and sold tires. Did she make a profit or incur a loss, and by what amount?
iv In the manufacturing plant operated at of capacity to produce and sell tires. Calculate the profit made or loss incurred.
v In Alice wanted a profit of $ Find the number of tires that she would have to producesell and the level?
vi What is the maximum profit per annum that she can expect from this facility?
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