Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,518.00 and the Tour-X (a fat-tire trail model)

image text in transcribed
image text in transcribed
Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,518.00 and the Tour-X (a fat-tire trail model) sells for $4,518.00. Unit variable costs for the Commuter are $1,768.00 and for the Tour- $3,218.00. Annual fixed costs at Georgeland are $658,300. The marketing manager estimates that the annual mix of sales is 30 percent Commuter model and 70 percent Touring model. Required: a. How many of each model ebike must Georgeland Cycles sell every year to break even? b. How many of each model ebike must Georgeland Cycles sell every year to earn operating profits of $102,150 before taxes? Complete this question by entering your answers in the tabs below. How many of each model ebike must Georgeland Cycles sell every year to break even? Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,518.00 and the Tour-x (a fat-tire trail model) sells for $4,518,00. Unit variable costs for the Commuter are $1,768.00 and for the Tour x$3,218,00. Annual fixed costs at Georgeland are $658,300. The marketing manager estimates that the annual mix of sales is 30 percent Commuter model and 70 percent Touring model. Required: a. How many of each model ebike must Georgeland Cycles sell every year to break even? b. How many of each model eblke must Georgeland Cycles sell every year to earn operating profits of $102,150 before taxes? Complete this question by entering your answers in the tabs below. How many of each model ebike must Georgeland Cycles sell every year to earn operating profits of \$102,150 before taxes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Energy Audits And Improvements For Commercial Buildings

Authors: Ian M. Shapiro

1st Edition

1119084164, 978-1119084167

More Books

Students also viewed these Accounting questions