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Break-Even with Multiple-Products Fitness Company sells two products: exercise bikes at $400 and treadmills at $800. The variable cost per unit is $325 per exercise
Break-Even with Multiple-Products Fitness Company sells two products: exercise bikes at $400 and treadmills at $800. The variable cost per unit is $325 per exercise bike and $600 per treadmill. Total fixed cost is $96,250. The expected sales mix is three exercise bikes to two treadmills. 1. Form a package of exercise bikes and treadmills based on the sales mix and calculate the package contribution margin. 2. Calculate the break-even point in units for exercise bikes and treadmills . 3. Check your answers by preparing a contribution margin income statement
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