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Wheels Corp, based in Surrey, British Columbia, offers a comprehensive array of environmentally friendly luxury bicycles. The company takes pride in its implementation of clean

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Wheels Corp, based in Surrey, British Columbia, offers a comprehensive array of environmentally friendly luxury bicycles. The company takes pride in its implementation of clean energy in its manufacturing plant. Wheels sells two types of bikes: mountain and road. Each mountain bicycle sells for $7,626 and road bicycle for $5,597. The per unit variable costs for a mountain bike include $1 ,780 in raw materials, $24.75 in packaging, $950.50 in manufacturing overhead and $39.95 in shipping. The variable costs for a road bike are $645 in raw materials, $2195 in packaging, $155 in manufacturing overhead and $35 in shipping. Wheels' xed costs include ofce rent of $48,000, office supplies of $12,000 and marketing expenses of $75,000. . Create a spreadsheet that provides the income position of the company for the upcoming year. The company projects demand to be 750 for mountain bikes, and 1,500 for road bikes. - Assuming a unit-tc-unit sale, what is a more protable product for Wheels? - Determine the break-even for each product, assuming that fixed expenses are allocated equally between the two products. - Provide a chart showing the break-even point for each product. 10

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