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Need correct answers please. 5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was
Need correct answers please. 5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $13,000 and at that price. Thad estimates 300 units would be sold each year. The variable cost to produce and sell the cycles would be $9.750 per unit. The annual fixed cost would be $877500 What is the degree of operating leverage? (Round your answer to 2 decimal places.) egree of operating verage 200 had is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price r the Western Hombre would have to be reduced to $10,500 to compete effectively. In that event. Thad would also reduce fred xpenses to $755,500 by reducing advertising expenses, but he still hopes to sell 300 units per year What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign s 5.500 Het operating income
Need correct answers please.
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