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 $ 1,250 $ 540 $ 80 Medium-quality 620 320 70 Three-quarters of the shops sales are medium-quality bikes. The shops annual fixed expenses are $191,400. (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 $99,000? Assume a constant sales mix.