Question
Trail Bikes, Inc. sells three Deluxe bikes for every seven Standard bikes. The Deluxe bike sells for $1,800 and has variable costs of $1,200. The
Trail Bikes, Inc. sells three Deluxe bikes for every seven Standard bikes. The Deluxe bike sells for $1,800 and has variable costs of $1,200. The Standard bike sells for $600 and has variable costs of $200.
A. If Trail Bikes has fixed costs that total $1,702,000, how many bikes must be sold in order for the company to break even?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the breakeven point you can use the contribution margin per bike The contribution margi...
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Operations Management Creating Value Along the Supply Chain
Authors: Roberta S. Russell, Bernard W. Taylor
7th Edition
9781118139523, 0470525908, 1118139526, 978-0470525906
