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A small company produce high-tech bicycles for international race teams. The company's fixed cost is 10,000 per month, required to pay for rent, salaries, and
A small company produce high-tech bicycles for international race teams. The company's fixed cost is 10,000 per month, required to pay for rent, salaries, and utilities. Every bicycle produced costs the company 500 in materials and other expenses. The company can produce a maximum of 40 bicycles per month. Part A (40%) Answer the following two questions: (You will have the option to upload your workings through the next question). 1. If the company is charging 1,000 per bicycle, how many bicycles must they produce in a month to break even? bicycles 2. If the company operate at 80% capacity utilisation, what is the minimum selling price per bicycle required for the company to break even? (Do not round your answer)
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