accountancy

15 points Save Answer It is year 2076 and after retiring as the CEO of the Thunder Bay hospital, you started a flying car business called Lakehead Motor Co. Lakehead sells and manufactures a flying car, with a sales price of $94,000. The company has the capacity to sell 30,000 flying cars per year. Costs and revenues are follows: Direct Materials $14,000 Direct Labour: $4,000 Var. OVH: $2,000 Var. SELL: 10% of Selling Price Fix. OVH: $3,400 Fix. SELL: $1,000 As flying cars are relatively new. Lakehead Motors expects to sell only 23:000 cars next year in its dealerships