Extensions of the Basic Model-Taxes: The Wheelright bicycle shop is considering adding a type of helmet to
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Extensions of the Basic Model-Taxes: The Wheelright bicycle shop is considering adding a type of helmet to its merchandise products. These helmets have the following prices and costs:
Required:
a. Wheelright's break-even point in units is:
(1) 76,667. (2) 90,000. (3) 130,000. (4) 72,000. (5) Some other amount.
b. How many units would Wheelright have to sell in order to earn $156,000 after taxes?
(1) 120,000 units. (2) 165,000 units. (3) 140,000 units. (4) 148,889 units. (5) Some other amount.
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