Business Driven Technology 6th Edition by Paige Baltzan

Exercise 129

Breaking Even
Mountain Cycle specializes in making custom mountain bikes. The company founder, PJ
Steffan, is having a hard time making the business profitable. Knowing that you have great
business knowledge and solid financial sense, PJ has come to you for advice.
Project Focus
PJ 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:
Fixed cost equals $65,000
Variable cost equals $1,575
Bike price equals $2,500