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Tim's 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

Tim's 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 High-quality Medium-quality Sales Price Invoice Cost Sales Commission $1,650 820 $740 520 $80 20 Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $258,850. (In the following requirements, ignore income taxes.) Required: 1. Compute the unit contribution margin for each product type. 2. What is the shop's sales mix? 3. Compute the weighted-average unit contribution margin, assuming a constant sales mix. 4. What is the shop's break-even sales volume in dollars? Assume a constant sales mix. 5. How many bicycles of each type must be sold to earn a target net income of $125,250? Assume a constant sales mix. Compute the unit contribution margin for each product type. Bicycle Type High-quality Medium-quality Unit Contribution Margin Required 1 Required 2 > What is the shop's sales mix? Bicycle Type High-quality Medium-quality Sales Mix % % < Required 1 Required 3 > Required 1 Required 2 Required 3 Required 4 Required 5 Compute the weighted-average unit contribution margin, assuming a constant sales mix. (Do not round intermediate calculations. Round your answer to 1 decimal place.) Weighted-average unit contribution margin < Required 2 Required 4 > Required 1 Required 2 Required 3 Required 4 Required 5 What is the shop's break-even sales volume in dollars? Assume a constant sales mix. (Do not round intermediate calculations.) Break-even sales volume < Required 3 Required 5 > How many bicycles of each type must be sold to earn a target net income of $125,250? Assume a constant sales mix. Bicycle Type Number of Bicycles High-quality Medium-quality < Required 4 Required 5

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