Question

Vernon Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Vernon produces and sells only 7,800 bikes each year. Due to the low volume of activity, Vernon is unable to obtain the economies of scale that larger producers achieve. For example, Vernon could buy the handlebars for $30 each; they cost $33 each to make. The following is a detailed breakdown of current production costs.

Answer 1

Vernon produces and sells only 6,100 bikes each year. Due to the low volume of activity, Vernon is unable to obtain the economies of scale that larger

What is  bikes?

A bicycle, also known as a pedal cycle, bike, or cycle, is a single-track, human-powered or motor-powered assisted vehicle with two wheels attached to a frame, one behind the other. A cyclist or bicyclist is someone who rides a bicycle. Bicycles were first introduced in Europe in the nineteenth century.

Infants under the age of 12 months should not be carried on a bicycle and should not sit in a rear bike seat. Infants should not be carried on a bike in backpacks or front carriers. It is not advised to leave babies in slumped positions for extended periods of time.

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