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Brad's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Invoice Cost
Brad's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Invoice Cost Sales Commission $550 $50 Product Type Sales Price High-quality $1,000 Medium- 600 quality 270 30 Seventy percent of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $148,500. (In the following requirements, ignore income taxes.) 4. What is the shop's break-even sales volume in dollars? Assume a constant sales mix. Break-even sales volume 5. How many bicycles of each type must be sold to earn a target net income of $99,000? Assume a constant sales mix. Bicycle Type Number of Bicycles High-quality Medium-quality
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