Exercise 138

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

		Sales Mix			Contribution Margin
Green		25	%		$120
Brown		45	%		$60
Blue		30	%		$40

Compute the number of each type of bike that the company would need to sell in order to break even under this product mix.

Green			bikes
Brown			bikes
Blue			bikes