These numbers show that the first decision that has to be made is to keep producing touring model. The next question is, Should they continue producing competition model?, if the answer is yes, how many and at what price?.
2) What do you think of the selling price of $795 for the competition bicycles?
In the table shows above it can be seen currently the competition model is not profitable... Showed first 250 characters
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In order to determine whether the price is the best or not we will do the breakeven analysis.
After distributing the fixed cost and expenses using the proportion of every category, the calculation of the breakeven point suggests that Veloplus should be selling at least 486 unit of the competition model at the price $ 795 in order to not lose money by selling them... Showed next 250 characters
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