Rollsrite Tires, Inc. sells tires to tire stores for an average of $135 each. The variable costs of each tire are $90 and monthly fixed manufacturing costs total $45,000. Other monthly fixed costs of the company total $36,000.

Required:

a.What is the breakeven level in tires?

b.What is the margin of safety in dollars assuming sales total $270,000?

c.What is the breakeven level in tires assuming variable costs increase by 20 percent?

d.What is the breakeven level in tires assuming the selling price goes up by 5 percent, fixed manufacturing costs decline by 8 percent and other fixed costs decline by $1,400?