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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 1930s.
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 $16,000 and at that price, Thad estimates 600 units would be sold each year. The variable cost to produce and sell the cycles would be $11,200 per unit. The annual fixed cost would be $1,440,000. a. What is the break-even in unit sales? Answer is complete and correct. Break-even in unit 300 sales b. What is the margin of safety in dollars? Answer is complete but not entirely correct. Margin of safety in $ dollars 8,000,000 c. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Degree of operating 1.00 leverage
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