The owners of Mountain Sports Ltd. are currently reviewing a proposal to adopt a new product line - BMX Bikes. This new product line will be compatible with their existing product line, Mountain Bikes and open a new target market, younger customers. It is anticipated that the BMX line be introduced next spring. Management has estimated the following for the BMX Bike product line: Expected sales 1.200 bikes Selling price $ 375.00 per bike Expenses: Advertising $ 6,000 annually Assembly S 60.00 per bike Cost of Goods Sold $ 130.00 per bike Salaries $ 4,000 per month Sales commissions 10% of sales Percentage Management has estimated the following for the BMX Bike product line Expected sales 1 200 bikes $ 375.00 per bike Expenses: Advertising $ 6 000 annually Assembly $ 60.00 per bike Cost of Goods Solo S 130.00 per bike Salaries s 4 000 per month Sales commissions 10% of sales The company will need to hire one sales clerk for the BMX line. This sales clerk will only work for five months of the year (May to September). BMX Product Line Budgeted CVP Income Statement For the year ended December 31 2020 TOTAL Per Bike Number of Bikes 1.200 Sales Revenue s 375 Less: Variable Costs (must be listed alphabetically) Advertising Assembly Cost of Goods Sold Total Variable Costs Less: Fixed Costs (must be listed alphabetically) Sales clerk will work for 5 months 5 Total Fixed Costs BMX SEGMENT MARGIN