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Julias Motorcycles Inc. produces one model of motorcycle, called the Lightning. The Lightning has an MSRP of $2,500. The cost to produce one unit is
Julias Motorcycles Inc. produces one model of motorcycle, called the Lightning. The Lightning has an MSRP of $2,500. The cost to produce one unit is $800. Their fixed costs are $2,000,000. You are responsible for deciding whether you should sell the Lightning via a retailer named Rugged Motors Inc. Rugged typically discounts its products 18% from the MSRP. They are asking for 55% distributor margin.
If Rugged were to be Julias only distributor, and they expected to sell 25,000 units, what would Julias revenues be? (show your work)
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