A. We need to know the level of revenue that would be the same for both models at which the profit would also be the same for both models.

Let M = the quantity of the Mountaineering model and T = the quantity of the Touring model. Since we have two unknowns, we will need two different equations, both using both unknowns. The question asks for a level of total revenue which will be the same for both models at which the profit will also be the same for both models. So one of our equations will need to be a revenue function and the other will need to be a profit function.

Since the profit must be the same for both models, we will create an expression of the profit for each model, using the contribution margins for each model multiplied by the quantity for each and from that subtracting the fixed cost for each. Since the profit must be the same, we set the two expressions equal to one another:

35.2M - 369,600 = 27.2T - 316,800

Since the revenue must also be the same for both models, next we create an expression of the revenue for each model and then set those two expressions equal to one another:

88M = 80T

We now have two equations in two unknowns. There is more than one way to solve these two equations. Here is one of the ways.Simplify the the revenue equation so that M is expressed in terms of T by dividing both sides of the revenue equation by 88. The result is M = .90909TTake this value for M expressed in terms of T and plug it into the profit equation in place of M. We now

have an equation in only one variable, T, and we can simplify it and solve for T:

(35.2 × .90909T) - 369,600 = 27.2T - 316,800

32T -369,600 = 27.2T - 316,800

4.8T = 52,800

T = 11,000

Take this value for T and plug it into the revenue equation in place of T. This will actually give you the answer, because it will result in total revenue:

88M = (80 ×11,000)

88M = 880,000

However, let's go further and solve for both quantities. Solving for M, we get:

M = 10,000

So the quantity of the Touring model is 11,000; and the quantity of the Mountaineering model is 10,000.Total revenue for the Touring model will be $80 × 11,000, or $880,000. Total revenue for the Mountaineering model will be $88 ×10,000, or $880,000.Profit for the Touring model will be ($35.20 × 10,000) - $369,600, or $(17,600). Profit for the Mountaineering model will be ($27.20 × 11,000) - $316,800, or $(17,600).

B. See correct answer.

C. See correct answer.

D. See correct answer.