Erosion costs. Fat Tire Bicycle Company currently sells 36,000 bicycles per year. The current bike is...
10.1 Erosion costs. Fat Tire Bicycle Company currently sells 39,000 bicycles per year. The current bike is a standard balloon-tire bike selling for $110, with a production and shipping cost of $30. The company is thinking of introducing an off-road bike with a projected selling price of $410 and a production and shipping cost of $250. The projected annual sales for the off-road bike are 16,000. The company will lose sales in fat-tire bikes of 9,500 units per year if...
Erosion costs. Fat Tire Bicycle Company currently sells 39,000 bicycles per year. The current bike is a standard balloon-tire bike selling for $100, with a production and shipping cost of $40. The company is thinking of introducing an off-road bike with a projected selling price of $370 and a production and shipping cost of $225. The projected annual sales for the off-road bike are 15,000. The company will lose sales in fat-tire bikes of 7,500 units per year if it...
Week 5 Project Built Right Bike Company (BRBC) is an established manufacturer of quality bicycles. They manufacture three styles of bicycles. Bicycle A is a popular racing bicycle primarily sold to dealers in the bicycle racing circuit. Their material is lightweight and durable with detachable joints for easy disassembly and storage. This market has been declining over the past couple years. Bicycle B is a sturdy leisure bike typically sold to resorts for use by vacationers. This market is stable...
The Rogers Bicycle & Gun Company sells a light, new road tire that they advertise to go over 5,000 miles before it must be replaced. Several of the company’s customers have complained that the new tire does not actually make it to 5,000 miles. The company decided to test the tires. They tested a sample of 25 tires and found the average tire life to be 4,300 miles with a standard deviation of 500 miles. It will cost the company...
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 929,000 $ 266,000 $ 404,000 $ 259,000 Variable manufacturing and selling expenses 471,000 117,000 197,000 157,000 Contribution margin 458,000 149,000 207,000 102,000 Fixed expenses: Advertising, traceable 69,400 8,500 40,700 20,200 Depreciation of special equipment 43,100 20,100 7,300 15,700 Salaries of product-line managers 114,400...
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 925,000 $ 266,000 $ 406,000 $ 253,000 Variable manufacturing and selling expenses 468,000 113,000 203,000 152,000 Contribution margin 457,000 153,000 203,000 101,000 Fixed expenses: Advertising, traceable 69,600 8,500 40,300 20,800 Depreciation of special equipment 43,500 20,600 7,400 15,500 Salaries of product-line managers 116,100...
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 921,000 $ 262,000 $ 402,000 $ 257,000 Variable manufacturing and selling expenses 483,000 117,000 208,000 158,000 Contribution margin 438,000 145,000 194,000 99,000 Fixed expenses: Advertising, traceable 69,600 8,500 40,600 20,500 Depreciation of special equipment 44,000 20,900 7,700 15,400 Salaries of product-line managers 115,100...
The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Dirt Mountain Racing Total Bikes Bikes Bikes $ 925,000 $268,000 $ 406,000 $ 251,000 477,000 111,000 208,000 158,000 448,000 157,000 198,000 93,000 Sales Variable manufacturing and selling expenses Contribution margin Fixed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed expenses* Total fixed expenses Net operating income...
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 929,000 $ 269,000 $ 408,000 $ 252,000 Variable manufacturing and selling expenses 464,000 117,000 194,000 153,000 Contribution margin 465,000 152,000 214,000 99,000 Fixed expenses: Advertising, traceable 69,500 8,500 40,900 20,100 Depreciation of special equipment 43,500 20,200 7,800 15,500 Salaries of product-line managers 116,600...
The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Dirt Mountain Racing Bikes Total Bikes Bikes Sales Variable manufacturing and selling $918,000 $262,000 400,000 256,000 152,000 461,000 116,000 193,000 expenses Contribution margin Fixed expenses: 457,000 146,000 207,000 104,000 40,600 7,900 38,600 80,000 411,600 122,400 167,100 69,400 44,300 20,900 Advertising, traceable Depreciation of special equipment Salaries of product-line managers Allocated common fixed...