Solution-Calculate breakeven for bicycleco

Calculate breakeven for bicycleco

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Reference no: EM132633862

CVP- Cost volume and profit analysis chapter HW question Using the following information for Bicycleco, answer the questions below.

January February March

# bicycles produced 400 500 650

Depreciation $3000 $3000 $3000

Labor $18,000 $22,000 $28,000

Wheels $8000 $10,000 $13,000

Question 1. Identify each of the above costs as fixed, mixed, or variable.

Question 2. Create equations for each cost.

Question 3. If Bicycleco sells bikes for $2000 each, and sells all the bikes produced each month, create CFISes for each month above.

Question 4. Calculate breakeven for Bicycleco. Is your calculation likely to be in the relevant range? Why or why not?

Question 5. If Bicycleco wants to earn $800,000 after tax and the tax rate is 30%, how many bicycles must Bicycleco sell?

Reference no: EM132633862

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Calculate breakeven for bicycleco

Reference no: EM132633862

Reference no: EM132633862

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