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 $2,000 1,100 Invoice Cost $1,050 770 Sales Commission $110 40 Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $239,400. (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 $128,250? Assume a constant sales mix. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 What is the shop's sales mix? Sales Mix Bicycle Type High-quality Medium-quality 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: Sales Price $2,000 1,100 Product Type High-quality Medium- quality Invoice Cost $1,050 770 Sales Commission $110 Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $239,400. (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 $128,250? Assume a constant sales mix. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Compute the weighted average unit contribution margin, assuming a constant sales mix. (Round your answer to 1 decimal place.) Weighted-average unit contribution margin Required 2 Required 4 > Tim's Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into tw categories, as follows: Product Type High-quality Medium- quality Sales Price $2,000 1,100 Invoice Cost $1,050 770 Sales Commission $110 40 Three-quarters of the shop's sales are medium-quality bikes. The shop's annual fixed expenses are $239,400. (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 $128.250? Assume a constant sales mix. Complete this question by entering your answers in the tabs below. 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. Break-even sales volume
