Mountain Cycle specializes in making custom mountain bikes. The company founder, P. J. Steffan, is having a hard time making the business profitable. Knowing that you have great business knowledge and solid financial sense, P. J. has come to you for advice.J. would like you to determine how many bikes Mountain Cycle needs to sell per year to break even. Using Goal Seek in Excel, solve using the following by using the AYK24_Data.xlsx fileFixed cost equals: $ 70,000Unit cost equals: $ 1,500Bike price equals: $ 3,500Requirement:1.Goal SeekCreate formula for break evenSet up goal seek function

Break-even point in units = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) Given…

Answered: Mountain Cycle specializes in making…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Mountain Cycle specializes in making custom mountain bikes. The company founder, P. J. Steffan, is having a hard time making the business profitable. Knowing that you have great business knowledge and solid financial sense, P. J. has come to you for advice.

J. would like you to determine how many bikes Mountain Cycle needs to sell per year to break even. Using Goal Seek in Excel, solve using the following by using the AYK24_Data.xlsx file

Fixed cost equals: $ 70,000
Unit cost equals: $ 1,500
Bike price equals: $ 3,500

Requirement:

1.Goal Seek