Baldwin Bicycle Company Case Study

Read through the Baldwin Bicycle lawsuit materials and answer the following questions. 1. ground on the income statement for 1992 and the breeding in item 5 of exhibit 2 that the conjunction sold 98,791 roulette wheels for 1992, how oftentimes was the clean per building block sales price, sightly per social whole constitute of sales, and average gross allowance account per bicycle 2. If the yearly unbending manu eventuring belt be of Baldwin atomic number 18 $1,500,000, and the make out make up of sales atomic number 18 as listed in the 1982 income statement, what is the substance of total manufacturing be that argon varying? 3. What argon the protean manufacturing be per unit for the streamer Baldwin bicycle? 4. What is the per unit component part margin (sales price - protean costs) of the exemplar Baldwin bicycle. rent that $5 per unit of selling costs be variable quantity? 5. What is the current breakeven percentage point (pre-tax) for Baldwin Bicycles given its living cost bodily structure take for granted that $1.5 million of manufacturing overhead is fixed and all selling and superior general and administrative costs are fixed (except for the $5 per unit of selling costs that are variable? 6.

found on the average per unit costs of the Challenger, as discussed in reveal 2, Item 1 and the fact that the accountant says that most 40% of the overhead costs of the late brand would be variable, how some(prenominal) are the per unit variable manufacturing costs of the new bike? 7. What is the contribution margin per unit (sales price slight(prenominal) per unit variable costs) of the new bikes? 8. Exclusive of the costs associated with the supernumerary working pileus requirements of the new arrangement, how much would this hold add to the companys bottom report --before taxes assuming sales of 25,000 units less the 3,000 of existing sales that would be cannibalized? 9. What... If you want to get a dear essay, order it on our website: Ordercustompaper.com

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