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please explain the answers as well Case 2 (20 Marks) Sydney Bicycles International Pty Ltd produces and sells three different types of mountain bikes. Information
please explain the answers as well
Case 2 (20 Marks) Sydney Bicycles International Pty Ltd produces and sells three different types of mountain bikes. Information regarding the three models is shown below. Total 40,000 units Unit sold Selling price Variable cost Pro 5,000 units $800 $500 Intermediate 10,000 units $500 $300 Standard 25,000 units $350 $250 The company's total fixed costs to produce the bicycles are $7,500,000. a) Determine and explain the sales mix as a function of units sold for the three products (5 Marks). b) Determine and explain the weighted-average unit contribution margin (5 Marks). c) Determine and explain the total number of units that the company must produce to break even (5 Marks). d) Determine and explain the number of units of each model that the company must produce to break evenStep by Step Solution
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