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A company has two divisions; Road Bike and Mountain Bike. The sales mix is 65% for Road Bike and 35% for Mountain Bike, as determined
A company has two divisions; Road Bike and Mountain Bike. The sales mix is 65% for Road Bike and 35% for Mountain Bike, as determined by total sales dollars. A company incurs $6,660,000 in fixed costs. The contribution margin ratio for Road Bike is 30%, while for Mountain Bike it is 50%. What will sales revenue be for the Road Bike Division at the break-even point?
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