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 $11,000, and at that price, Thad estimates he could sell 600 units each year. The variable cost to produce and sell the cycles would be $8,250 per unit. The annual fixed cost would be $1,320,000