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Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1 9

Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that
was popular in the 1930 s. The retro-look cycle would be sold for $18,000, and at that price, Thad estimates he could sell 700 units
each year. The variable cost to produce and sell the cycles would be $12,600 per unit. The annual fixed cost would be $1,890,000.
a. What is the break-even in unit sales?
Break-even in unit sales
b. What is the margin of safety in dollars?
Margin of safety in dollars
c. What is the degree of operating leverage?
Note: Round your answer to 2 decimal places.
Degree of operating leverage
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