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3. Exercise Express sells two types of exercise equipment. For each treadmill, the selling price is $500 with variable manufacturing cost being $275 and
3. Exercise Express sells two types of exercise equipment. For each treadmill, the selling price is $500 with variable manufacturing cost being $275 and sales commission being $25. For each elliptical, the selling price is $300 with variable manufacturing cost being $135and sales commission being $15. Three-quarters of the shop's revenue is from the sale of ellipticals. The shop's annual fixed expenses are $65,000. (In the following requirements, ignore income taxes.). Required: 3a. Compute the unit contribution margin for each product type. 3b. Assuming a constant sales mix, compute the weighted-average unit contribution margin, the shop's break-even sales volume in dollars, the number of each equipment must be sold to earn a target net income of $48,750. Sales
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