Question: can you please help with part C? 5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of
5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $14,000 and at that price, Thad estimates 100 units would be sold each year. The variable cost to produce and sell the cycles would be $9,800 per unit. The annual fixed cost would be $210,000. a. What is the break-even in unit sales? Answer is complete and correct. b. What is the margin of safety in dollars? Answer is complete and correct. C. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
