STT = 2

Problem 3. (1.5 points) MINH DAT Shop sells bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Type Professional product Normal product Sales price ($) 500+ STT 330+ STT Invoice Cost (%) Sales Commision Fee 300 25 150 10 Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $65,000 +(STT* 100). (In the following requirements, ignore income taxes.) Required: 1. Compute the unit contribution margin for each product type. (0.25 points) 2. What is the shop's sales mix? (0.25 point) 3. Compute the weighted-average unit contribution margin, assuming a constant sales mix. (0.25 points) 4. What is the shop's break-even sales volume in dollars? Assume a constant sales mix. (round up the number), (0.25 points) 5. How many bicycles of each type must be sold to earn a target net income of $150,750? Assume a constant sales mix. (round up the number) (0.5 points)