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Air Co manufactures electric bicycles for clean city driving. The company's monthly fixed costs are $55,566. Each bicycle's sales price is $4,900. In a typical
Air Co manufactures electric bicycles for clean city driving. The company's monthly fixed costs are $55,566. Each bicycle's sales price is $4,900. In a typical month, Air Co sells 30 bicycles. Variable costs are $1,470 per bicycle. A. Compute the break-even in sales dollars (round to nearest dollar) and in units (round to one decimal). B. Determine the operating leverage for Air Co at the typical month's sales volume (round to two decimals). C. Based on your answer to part B, if sales volume increases 4%, calculate the percent impact on the income statement. Be specific: name the Income Statement LINE, state increase or decrease, and show your basic math
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