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Smith Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020, it budgeted to manufacture and sell 3,600 tires at a
Smith Enterprises manufactures tires for the Formula I motor racing circuit. For August 2020, it budgeted to manufacture and sell 3,600 tires at a variable cost of $76 per tire and total fixed costs of $54,500. The budgeted selling price was $114 per tire. Actual results in August 2020 were 3,400 tires manufactured and sold at a selling price of $115 per tire. The actual total variable costs were $285,600, and the actual total fixed costs were $51,500.
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