BREAKEVEN$-$ Tandem Bikes

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Tandem Bikes manufactures exercise bicycles built for two.$$ It sells a cycle for $$196($custom painted in your color choice$).$ The costs associated with Tandem$$s production are:

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$$ Fixed costs $($per year$)$ Variable Costs per bike

$$ Administrative labor $$50000$ Materials$$ $$30$

$$ Utilities$5000$ Mfg$.$ Labor$24$

$$ Plant Overhead$65000$ Assembly labor$8$

$$ TOTAL$$ $$120000$ Packing material$3$

$$ Packing labor$2$

$$ Note: this is $$10000$ per month.$$ Shipping cost$10$

$$ TOTAL$$ $$77$

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Find the monthly breakeven quantity using the above data.

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Express monthly breakeven in dollar sales $($using the quantity calculated in #$1).$

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The cost of utilities doubles $($annual fixed costs are now $$125000$ which is $$10416\mathrm{.}67$ per month$).$ What is the new monthly breakeven quantity?

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What is the Contribution Margin Ratio $($CMR$),$ using the costs used in #$3?$

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You believe you can sell only $80$ bikes a month.$$ Using the costs from #$3,$ what price must be charged per bike to break even selling only $80$ bikes per month?

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Using the original selling price of $$196$ and costs used in #$3,$ compute a DOL for a $100$ unit monthly $$level of production.