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5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the
5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $14,000 and at that price, Thad estimates 400 units would be sold each year. The variable cost to produce and sell the cycles would be $9,800 per unit. The annual fixed cost would be $1,512,000. a. What is the break-even in unit sales? Answer is complete but not entirely correct. Break-even in unit sales 450 b. What is the margin of safety in dollars? Answer is complete but not entirely correct. Margin of safety in dollars $ 2,100,000
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