1 Normal TNo Spac Heading 1 Heading 2 Title Subtitle Subd Paragraph Styles Problem (IT) Multiple Product CVP Analysis: SHU Bicycle Shop sells Mountain bikes, Dirt bikes and Leisure bikes. D. Shim, owner, aggregated the following information with help of SHU Accounting Consulting Group: Product Sales Price Purchase Cost Mountain Bike $1,500 $900 Dirt Bike $1,800 $800 Leisure Bike $800 S600 The shop anticipates selling 600 Mountain bikes, 250 Dirt bikes and 150 Leisure bikes. Monthly common fixed costs which can't be separated to any product are $1,000,000 and income tax rate is 40% Required) 1. What is unit contribution margin and sales mix for Mountain bike, Dirt bike and Leisure bike? Mountain Bike A) Sales Mix: SM-Mountain Bike B) Contribution Margin: UCM-Mountain Bike Dirt Bike A) Sales Mix: SM-Dirt Bike B) Contribution Margin: UCM-Dirt Bike Leisure Bike A) Sales Mix: SM-Leisure Bike I B) Contribution Margin: CM-Leisure Bike Bi lyje 95 20 5 6 8 9 Styles 2. Prepare current contribution margin income statement using above information. Total Mountain Bike Dirt Bike Leisure Bike Total Unit Cost Total Unit Cost Total Unit Cost Total % Total Unit Sales Variable Costs Contribution Margin Fixed Costs Income before taxes Income Taxes (40%) Income After Taxes o BA lige AdBDC AdBDCCL HD AaBbe 1 Normal 1 No Spac... Heading 1 Heading 2 Subti Title Paragraph Styles 3. What is shop's breakeven sales volume in units and in dollars for each product and total products? waum = (10%)(30) + (50%)(20) + (40%) (10) - 17 Q=f/ waum Mountain Bike Dirt Bike Leisure Bike 4. How many bieycles of each type must be sold to earn $920,000 before taxes? T o pat E lije 6 5. How many bicycles of each type must be sold to earn after tax income of $1,000,000? 1 o i ligi 8 98 5 6 7 8 9 Tilly U P. 1 Normal TNo Spac Heading 1 Heading 2 Title Subtitle Subd Paragraph Styles Problem (IT) Multiple Product CVP Analysis: SHU Bicycle Shop sells Mountain bikes, Dirt bikes and Leisure bikes. D. Shim, owner, aggregated the following information with help of SHU Accounting Consulting Group: Product Sales Price Purchase Cost Mountain Bike $1,500 $900 Dirt Bike $1,800 $800 Leisure Bike $800 S600 The shop anticipates selling 600 Mountain bikes, 250 Dirt bikes and 150 Leisure bikes. Monthly common fixed costs which can't be separated to any product are $1,000,000 and income tax rate is 40% Required) 1. What is unit contribution margin and sales mix for Mountain bike, Dirt bike and Leisure bike? Mountain Bike A) Sales Mix: SM-Mountain Bike B) Contribution Margin: UCM-Mountain Bike Dirt Bike A) Sales Mix: SM-Dirt Bike B) Contribution Margin: UCM-Dirt Bike Leisure Bike A) Sales Mix: SM-Leisure Bike I B) Contribution Margin: CM-Leisure Bike Bi lyje 95 20 5 6 8 9 Styles 2. Prepare current contribution margin income statement using above information. Total Mountain Bike Dirt Bike Leisure Bike Total Unit Cost Total Unit Cost Total Unit Cost Total % Total Unit Sales Variable Costs Contribution Margin Fixed Costs Income before taxes Income Taxes (40%) Income After Taxes o BA lige AdBDC AdBDCCL HD AaBbe 1 Normal 1 No Spac... Heading 1 Heading 2 Subti Title Paragraph Styles 3. What is shop's breakeven sales volume in units and in dollars for each product and total products? waum = (10%)(30) + (50%)(20) + (40%) (10) - 17 Q=f/ waum Mountain Bike Dirt Bike Leisure Bike 4. How many bieycles of each type must be sold to earn $920,000 before taxes? T o pat E lije 6 5. How many bicycles of each type must be sold to earn after tax income of $1,000,000? 1 o i ligi 8 98 5 6 7 8 9 Tilly U P