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Bill's Tires Produces Specialty Tires for the Lawn Mower Industry

Question 21

Short Answer

Bill's Tires produces specialty tires for the lawn mower industry. Bill is trying to evaluate his current month's profit for his 6-inch tire. The tire's unit selling price is $5.00, the variable cost per unit is $3, sales volume is 260 units, and fixed costs are $120 for the period. Which of the following is the amount of profit before taxes on the 6-inch tire product line? a. $1,180
B) $900
C) $400
D) $520

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