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	$	1,150		$	490		$	70
Medium-quality		570			270			60

Three-quarters of the shops sales are medium-quality bikes. The shops annual fixed expenses are $196,500. (In the following requirements, ignore income taxes.)

Required:

1. Compute the unit contribution margin for each product type.

2. What is the shops sales mix?

3. Compute the weighted-average unit contribution margin, assuming a constant sales mix.

4. What is the shops 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 $98,250? Assume a constant sales mix.