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Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,503.00 and the Tour-X (a fat-tire trail model)
Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,503.00 and the Tour-X (a fat-tire trail model) sells for $4,503.00. Unit variable costs for the Commuter are $1,753.00 and for the Tour-X $3,203.00. Annual fixed costs at Georgeland are $488,050. The marketing manager estimates that the annual mix of sales is 30 percent Commuter model and 70 percent Touring model.
Required:
- How many of each model ebike must Georgeland Cycles sell every year to break even?
- How many of each model ebike must Georgeland Cycles sell every year to earn operating profits of $102,150 before taxes?
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