Class Material: Rachels Bikes.html

Products

Rachel's Bikes sells four types of bike:

Green Bikes for $50

Yellow Bikes for $100

Red Bikes for $150

Black Bikes for $500

Bike Costs

Rachel buys bikes from the manufacturer at the following wholesale prices:

Green Bikes: $35

Yellow Bikes: $60

Red Bikes: $75

Black Bikes: $150

Shipping Costs

Rachel offers her customers free shipping. When she ships a bike, she pays $10 to the shipping company.

Other Costs

In addition to bike and shipping costs, Rachel has the following costs:

Website hosting fees of $10,000

$1,500 in interest payments on a line of credit with the bank

Business income taxes equal to 5% of pre-tax profit

Sales Volumes

In 2022, Rachel sold:

1,000 Green Bikes

1,000 Yellow Bikes

500 Red Bikes

100 Black Bikes

QUESTION 2

What was Rachel's total revenue in 2022?

QUESTION 3

What is the unit cost of a Yellow Bike?

QUESTION 4

Which of Rachel's products has the highest gross margin?

		Green Bike
		Yellow Bike
		Red Bike
		Black Bike

QUESTION 5

What was Rachel's total gross profit in 2022?

QUESTION 6

What percentage of Rachel's 2022 gross profit came from Green Bikes?

(Round to the nearest percentage and enter the amount as a percentage point without the % sign. For example, if the answer was 3.9%, you should enter "4".)

QUESTION 7

What was Rachel's operating profit in 2022?

QUESTION 8

What was Rachel's total net profit in 2022?