Manzeck Bicycles International produces and sells three different types of mountain bikes. Information regarding the three models is shown below.

The companys total fixed costs are $7,500,000.

Question:

1. (a) Determine the sales mix as a function of units sold for the three products.

2. (b) Determine the weighted-average unit contribution margin.

3. (c) Determine the total number of units that the company must sell to break even.

4. (d) Determine the number of units of each model that the company must sell to break even.

Total 40,000 Pro Units sold 5,000 Selling price ($/unit) $800 Variable costs ($/unit) $500 Intermediate 10,000 $500 $300 Standard 25,000 $350 $250