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QUESTION 3 (10 MARKS) Manzeck Bicycles International produces and sells three different types of mountain bikes. Information regarding the three models is shown below. Pro
QUESTION 3 (10 MARKS) Manzeck Bicycles International produces and sells three different types of mountain bikes. Information regarding the three models is shown below. Pro Intermediate Standard Total Units sold 500 1,000 2,500 4,000 Selling price $800 $500 $350 Variable costs $500 $250 The company's total fixed costs to produce the bicycles are $750,000. A. Determine the SALES MIX PERCENTAGE as a function of UNIT SOLD for the three products. (3 MARKS) Sales Mix % PRO Sales Mix % INTERMEDIATE Sales Mix % Standard $300 B. Determine the WEIGHTED-AVERAGE UNIT CONTRIBUTION MARGIN. (3 MARKS) C. Determine the TOTAL NUMBER OF UNITS that the company must produce to BREAK EVEN. (1 MARK D. Determine the NUMBER OF UNITS OF EACH MODEL that the company must produce to BREAK EVEN. (3 MARKS) # of unit for PRO # of unit for INTERMEDIATE # of unit for Standard
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