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Speedy Ltd. manufactures and sells bicycles and is based in Jamaica. Speedy Ltd. does not sell its bicycles locally but exported 2,000 bicycles to
Speedy Ltd. manufactures and sells bicycles and is based in Jamaica. Speedy Ltd. does not sell its bicycles locally but exported 2,000 bicycles to the Eastern Caribbean. Speedy Ltd.'s board of directors is currently considering expanding into the Central American market. Using the same distribution channel employed in the Eastern Caribbean. The following are Speedy's expenses and selling price: Fixed cost of $150,000 Variable cost per unit 80% of selling price Selling price per bicycle $1,500 Required: a. Calculate the breakeven point in units and dollar value. Calculate the margin of safety in units. b. (4 marks) (2 marks) (4 marks) c. Prepare the income statement if 2,000 bicycles are sold d. Using Excel prepare a fully labelled conventional breakeven chart marks) (10
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Requirement a Breakeven point in units 500 units Breakeven point in dollar value 750000 Working note...Get Instant Access to Expert-Tailored Solutions
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