Freedom Rock Bicycle runs a guide service to some of Utah's national parks and scenic back country. Freedom Rock Bicycle has many pieces of equipment including four-wheel drive vehicles, side-by-side ATVs, and four-wheelers. Guests reserve day trips and even weeks of sight-seeing with Freedom Rock Bicycle. The Company's costs and revenues for last year were as follows: Revenues: $4,500,000 Fixed expenses: 1,000,000 Variable expenses: 3,000,000 What is Freedom Rock Bicycle's breakeven point in sales revenue and at what level of sales would it need to make $1,000,000?

Answer rating: 100% (QA)

We can calculate the breakeven point and target sales level for Freedom Rock Bicycle using the follo... View the full answer