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PR 4-5A Sales mix and break-even sales Data related to the expected sales of mountain bikes and road bikes for Cycle Sports Inc for the
PR 4-5A Sales mix and break-even sales Data related to the expected sales of mountain bikes and road bikes for Cycle Sports Inc for the current year, which is typical of recent years, are as follows: Products Mountain bikes Road bikes Unit Selling Price $800 700 Unit Variable Cost $475 325 Sales Mix 60% 40% The estimated fixed costs for the current year are $724,500. Instructions 1. Determine the estimated units of sales of the overal total product necessary to reach the break-even point for the current year. mountain bikes and road bikes for the current year. Compare the break-even point with that in part (). Why is it so different? 2. Based on the break-even sales (units) in part (1), determine the unit sales of both 3. Assume that the sales mix was 50% mountain bikes and 50% road bikes
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