CVP; operating leverage, income statement Racine Tire Co. manufactures tires for all-terrain vehicles. The tires sell for $60, and variable cost per tire is $30; monthly fixed cost is $1,170,000 a What is the break even point in units and sales dollars? Break-even point in units 0 Break-even in sales dollars: $.0 tres per month b. If Ronnie Rice, the company's CEO, wants the business to earn a pre-tax profit of 25 percent of revenues, how many tires must be sold each month? 01 If the company is currently selling 52,000 tires monthly, what is the degree of operating leverage? 0 d. 1. If the company can increase sales volume by 15 percent above the current level, what will be the increase in net income? What will be the new net income? New net income 5 0 Increase in net income 5 0 2. Prove your calculations with an income statement Note: Do not use negatives signs with your answers Racine Tire Co. For the Manch Less Current Proposed units