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	$	1,400		$	750		$	90
Medium-quality		800			470			70

Three-quarters of the shops sales are medium-quality bikes. The shops annual fixed expenses are $147,400. (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 $100,500? Assume a constant sales mix.

Compute the unit contribution margin for each product type.

Bicycle Type	Unit Contribution Margin
High-quality
Medium-quality

What is the shops sales mix?

Bicycle Type	Sales Mix
High-quality		%
Medium-quality		%

Compute the weighted-average unit contribution margin, assuming a constant sales mix. (Round your answer to 1 decimal place.)

	Weighted-average unit contribution margin

What is the shops break-even sales volume in dollars? Assume a constant sales mix.

Break-even sales volume

How many bicycles of each type must be sold to earn a target net income of $100,500? Assume a constant sales mix.

Bicycle Type	Number of Bicycles
High-quality
Medium-quality