Exercise 3-51 (Static) Multiproduct CVP Analysis (LO 3-4) Georgeland Cycles makes and sells two models...
70.2K
Verified Solution
Link Copied!
Question
Accounting
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? 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 earn operating profits of $102,150 before taxes
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!