Calculate breakeven in units and total revenue

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Scenario: APC Bikes, a manufacturer of sturdy mountain bikes for intermediate-level bikers. Due to the increasing popularity of cross-country
cycling, the management of APC Bikes wants to produce a new mountain bike. After discussions with the sales and production teams, management has forecast the following information:

Price per bike                                           $800
Variable cost per bike                                 $300
Fixed costs related to bike production         $5,500,000
Targeted pre-tax profit                             $300,000
Targeted post-tax profit                            $210,000
Tax rate                                                  30%

Required:

Question 1: Calculate breakeven in units and total revenue.

Reference no: EM132535099

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