Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Question 1 (10 marks) Cydeworld has 2 model of bicydes they are considering manufacturing. The relevant budgeted information about each model is as follow Basic
Question 1 (10 marks) Cydeworld has 2 model of bicydes they are considering manufacturing. The relevant budgeted information about each model is as follow Basic Model $300 Delux Model 5500 $100 $350 Selling Price per unit Volatile manufacturing costs per unit Variable selling and admin costs per und 510 $25 The fired constare budgeted as follows Fed manufacturing costs $250.000 Finding admin coste 500.000 Total fixed cost 5330.000 on Calculate the contribution margin for each bicycle model (basic and deluxd and provide a recommendation to CycleWorld which could be the better option if they could only muructure on be due to limited resources. (3 mars Calculate the break even units and sales revenue for the delux model using the contribution matgin method. (2 marks) Da How many units of the best model world need to be sold to achieve a target profit of $110.000 using the contribution margin method. (2 marks) () Amame in year 2 Cycleward are producing the delux model only and are considering investing in new plant, this would result in an increase in fixed costs of 540,000 but reduce the bemutacturing conta per unit of the del model by $20 per unit would you advise the management of Cydeworld to proceed with the investment? Ensure your answer is ported by lotions and clear commendation marks
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/6695bb9687a7f_9186695bb962b521.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started