5. thad morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the western hombre brand of cycle that was popular in the 1930s. the retro-look cycle would be sold for $14,000 and at that price, thad estimates 300 units would be sold each year. the variable cost to produce and sell the cycles would be $10,500 per unit. the annual fixed cost would be $997,500.