Question: exercuse 3-51 Exercise 3-51 (Static) Multiproduct CVP Analysis (LO 3-4) Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model)
Exercise 3-51 (Static) Multiproduct CVP Analysis (LO 3-4) Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,500.00 and the TourX (a fat-tire trail model) sells for $4,500.00. Unit variable costs for the Commuter are $1,750.00 and for the Tour- X$3,200,00. Annual fixed costs at Georgeland are $454,000. 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. How many of each model ebike must Georgeland Cycles sell every year to break even? How
Step by Step Solution
There are 3 Steps involved in it
Exercise 351 Multiproduct CVP Analysis Given Data Item Commuter TourX Selling Price per Unit 2500 45... View full answer
Get step-by-step solutions from verified subject matter experts
