Mr. Kahlil David has asked that each person conducts analysis on the basis of the following changes. Reid cycles-Werribee Store expects that salary of store managers as well as rental contract of its premises would be expected to increase by mid-2021 by a total amount of $30,000. This situation will directly affect fixed costs of the store. It is expected that budgeted sales volume will decline by 10%, but selling price per bicycle and all variable costs will remain the same during 2021.

a.Taking into accounting the decline in projected sales volume and increase in fixed costs, determine how many bicycles of each type shouldReid cycles-Werribee Store produce and sellin order to breakeven in the year 2021.