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Given below information about Racing Bicycle Company. Use Excel to answer the following questions. Racing Bicycle Company For the Month of June Total Sales
Given below information about Racing Bicycle Company. Use Excel to answer the following questions. Racing Bicycle Company For the Month of June Total Sales (600 bicycles) Less: Variable expenses $ 300,000 180,000 I Less: Fixed expenses 90,000 1- Provide Contribution Income Statement for RBC. 2- What is the profit impact if Racing Bicycle can increase unit sales from 600 to 640 by increasing the monthly advertising budget by $12,000? 3- What is the profit impact if Racing Bicycle can use higher quality raw materials, thus increasing variable costs per unit by $12, to generate an increase in unit sales from 600 to 680? 4- What is the profit impact if RBC: (1) cuts its selling price $30 per unit, (2) increases its advertising budget by $15,000 per month, and (3) increases sales from 600 to 750 units per month? 5- What is the profit impact if RBC: (1) pays a $ 20 sales commission per bike sold instead of paying salespersons flat salaries that currently total $6,500 per month, and (2) increases unit sales from 600 to 675 bikes? 6- If RBC has an opportunity to sell 160 bikes to a wholesaler without disturbing sales to other customers or fixed expenses, what price would it quote to the wholesaler if it wants to increase monthly profits by $4,000?
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