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3. Seaver Corporation manufactures mountain bikes. It has fixed costs of $4,140,000. Seaver's sales mix and contribution margin per unit is shown as follows: (12

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3. Seaver Corporation manufactures mountain bikes. It has fixed costs of $4,140,000. Seaver's sales mix and contribution margin per unit is shown as follows: (12 pts.) Sales Mix Contribution Margin Green 25% $120 Brown 45% $ 60 Blue 30% $ 40 Instructions Compute the number of each type of bike that the company would need to sell in order to break even under this product mix. Solution Weighted-Average Sales Mix x Contribution Margin Contribution Margin Green Brown Blue Total break-even sales = Sales Mix Green X Brown X II II II Blue X

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