31 Dec A firm produces bikes by producing the frames by t
A firm produces bikes by producing the frames by themselves andprocuring other parts through its supply chain. It has its ownassembly line to produce the bikes. Please calculate the Break EvenPoint in Dollars ($) AND in units for producing bicycles by thefirm when: a. The production involves a fixed cost of $500,000 ayear b. The production also involves a cost of producing the framesat $ 45.00 per bike, procurement of other parts at $23 per bike,and an assembly cost of $1000 per a batch of 40 bikes. c. The bikesare expected to be sold at a price of $150 a piece Questions: 1. If the bikes are produced in batches of 40 per day and thefirm operates its production on 25 weeks in a year, what is thebreak-even point for the firm? 2. With the batch process installed, if the firm operates onlyfor 20 weeks in a year what should be the break-even points for thefirm in terms of units and $? Attached
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