Thus we need to understand that if the product is to sold only in the market of OEM, there needs to be a sale of about 1.65 million tires. This is because each tire contributes about $15.138 for the purpose of marketing and also for the purpose of general administration. In order to cover the other part of $120 million to be spent on the level of production facilities, there need to be a sale of about 7.93 million tires more. Further to cover the capital expenditure of the amount of $15 million, there needs to have sale of about an amount of 0.99 million tires. While taking the entire duration of 4 years or so, there need to have another sale in terms of 15.52 million tires and this is to be during the expected lifespan time period of the product. Any sale which is to be conducted over that figure will add more to the company profits which is at about $15.138 per tire. The prospects have to be assessed and understood then by means of expected sale figures. .

             Now let us look at the other market of replacement tires. Here the sales price is $59 per tire and the direct costs are still $18 per tire. Thus the total overall contribution is at the rate of about $41 per tire. From this amount an amount of 15.9 per cent discount is being made and after that the contribution in terms of each tire is considered to be as $34.48 per tire. In order to bring about a recover in terms of marketing and expenditure relating to general administration, it would need a sale worth of 0.73 million tires in annual records as this is because each tire is contributing to an amount of $34.48. The next question to be discussed is that of covering an amount of $120 million which is being spent on that of facilities relating to production and this would require a sale worth of about 3.48 million tires. The other item which is left to cover is that of capital expenditure worth $15 million and for this there need to have a sale of about 0.