$1$

Exercise $3-51($Algo$)$ Multiproduct CVP Analysis $($LO $3-4)$

Georgeland Cycles makes and sells two models of electric bicycles. The Commuter $($a folding model$)$ sells for $$2,504\mathrm{.}00$ and the Tour$-$

$x($a fat$-$tire trail model$)$ sells for $$4,504\mathrm{.}00.$ Unit variable costs for the Commuter are $$1,754\mathrm{.}00$ and for the Tour$-x$$$3,204\mathrm{.}00.$ Annual

fixed costs at Georgeland are $$499,400.$ The marketing manager estimates that the annual mix of sales is $30$ percent Commuter

model and $70$ percent Touring model.

Required:

a$.$ How many of each model ebike must Georgeland Cycles sell every year to break even?

b$.$ How many of each model ebike must Georgeland Cycles sell every year to earn operating profits of $$102,150$ before taxes?

Complete this question by entering your answers in the tabs below.

Required $A$

How many of each model ebike must Georgeland Cycles sell every year to break even?