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Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,508.00 and the Tour- X (a fat-tire trail model) sells for $4,508.00. Unit variable costs for the Commuter are $1,758.00 and for the Tour-X $3,208.00. Annual fixed costs at Georgeland are $544,800. 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?

Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,508.00 and the Tour- X (a fat-tire trail model) sells for $4,508.00. Unit variable costs for the Commuter are $1,758.00 and for the Tour-X $3,208.00. Annual fixed costs at Georgeland are $544,800. 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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,508.00 and the Tour- X (a fat-tire trail model) sells for $4,508.00. Unit variable costs for the Commuter are $1,758.00 and for the Tour-X $3,208.00. Annual fixed costs at Georgeland are $544,800. 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. Required A Required B How many of each model ebike must Georgeland Cycles sell every year to break even? Commuter Break-even ebikes Tour-X Required A Required B >
Transcribed Image Text:Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,508.00 and the Tour- X (a fat-tire trail model) sells for $4,508.00. Unit variable costs for the Commuter are $1,758.00 and for the Tour-X $3,208.00. Annual fixed costs at Georgeland are $544,800. 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. Required A Required B How many of each model ebike must Georgeland Cycles sell every year to break even? Commuter Break-even ebikes Tour-X Required A Required B >
Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,508.00 and the Tour- X (a fat-tire trail model) sells for $4,508.00. Unit variable costs for the Commuter are $1,758.00 and for the Tour-X $3,208.00. Annual fixed costs at Georgeland are $544,800. 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. Required A Required B How many of each model ebike must Georgeland Cycles sell every year to earn operating profits of $102,150 before taxes? Number of ebikes Commuter Tour-X < Required A Required>
Transcribed Image Text:Georgeland Cycles makes and sells two models of electric bicycles. The Commuter (a folding model) sells for $2,508.00 and the Tour- X (a fat-tire trail model) sells for $4,508.00. Unit variable costs for the Commuter are $1,758.00 and for the Tour-X $3,208.00. Annual fixed costs at Georgeland are $544,800. 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. Required A Required B How many of each model ebike must Georgeland Cycles sell every year to earn operating profits of $102,150 before taxes? Number of ebikes Commuter Tour-X < Required A Required>
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