1.)

2.)

Trail King manufactures mountain bikes. Its sales mix and contribution margin information per unit are as follows: Sales Mix Contribution Margin Destroyer 16% $105 Voyager 62% 52 Rebel 22% 32 It has fixed costs of $4,862.136. Calculate the number of each type of bike that the company would need to sell in order to break even under this product mix Destroyer units Voyager units Rebel units The Richibouctou Inn is trying to determine its break-even point. The inn has 70 rooms available that are rented at $60 a night. Operating costs are as follows: Salaries $10,610 per month $510 per month Utilities $1.960 per month $2,040 per month Maintenance Housekeeping service Other costs $6 per room Depreciation $30 per room (a) Determine the inn's break-even point in the number of rented rooms per month and dollars. Break-even point rooms Break-even point S (b). If the inn plans on renting 25 rooms per day (assuming a 30-day month), what is the monthly margin of safety in dollars and the margin of safety ratio? Monthly margin of safety $ Margin of safety ratio