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Tim s Bicycle Shop sells 2 1 - speed bicycles. For purposes of a cost - volume - profit analysis, the shop owner has divided

Tims Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows:
Product Type Sales Price Invoice Cost Sales Commission
High-quality $ 1,600 $ 850 $ 110
Medium-quality 90057090
Three-quarters of the shops sales are medium-quality bikes. The shops annual fixed expenses are $170,000.(In the following requirements, ignore income taxes.)
Required:
Compute the unit contribution margin for each product type.
What is the shops sales mix?
Compute the weighted-average unit contribution margin, assuming a constant sales mix.
What is the shops break-even sales volume in dollars? Assume a constant sales mix.
How many bicycles of each type must be sold to earn a target net income of $102,000? Assume a constant sales mix.

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