Business, 11.02.2021 22:00 staz13wiggins
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 $12,000 and at that price, Thad estimates 400 units would be sold each year. The variable cost to produce and sell the cycles would be $9,000 per unit. The annual fixed cost would be $960,000.
Show your calculation steps.
a. What is the break-even in unit sales?
Break-even in unit sales
b. What is the margin of safety in dollars?
Margin of safety in dollars
c. What is the degree of operating leverage? (Round your answer to 2 decimal places.)
Degree of operating leverage
Answers: 1
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Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western...
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