1. What is the break-even point of each model (in units and pesos)?

2. The total peso sales at which Bisikleta would make the same profit or loss regardless of the bike model it decided to produce is ______?

3. If projected sales are guaranteed at 6,000 units of either model, which model should the company produce?

4. If projected sales are guaranteed at 6,000 units of either model and the company made the right decision as to which model to produce, the margin of safety from the chosen model would be ______?

5. If Bisikleta desires to earn a profit of 25% of sales, which model should the company produce?

Bisikleta Corporation has just increased its manufacturing capacity to enable it to introduce new models of bicycles which it could not produce in the past due to capacity constraints. For the coming period, Bisikleta is planning to start the production of a new model, which could either be the Pambundok Bike or Pangkarera Bike. A recently concluded feasibility study on the two models showed the following results: Pambundok Bike Pangkarera Bike Selling price P 4,400 P 4,000 Variable costs 2,640 2,640 Fixed costs 3,696,000 3,168,000 Projected sales per year Between 4,500 to 6,500 of either model