Question
Trail King manufactures mountain bikes. Its sale mix and contribution margin information per unit are as follows: Sale mix Contribution margin Destroyer 15% $120 Voyager
Trail King manufactures mountain bikes. Its sale mix and contribution margin information per unit are as follows:
Sale mix | Contribution margin | |
Destroyer | 15% | $120 |
Voyager | 60% | $ 60 |
Rebel | 25% | $ 40 |
It has fixed costs of $5,440,000.
Please answering the following questions:
a. Calculate Trail King's weighted average unit contribution margin for all products. $
b. What is the total contribution margin at the break-even point?
c. Calculate the total number of units that Trail King must sell in order to break-even under this product mix? Answer(units)
d. Calculate the number of units of each product that Trail King must sell in order to break-even under this product mix? The total should equal the total number of units in the previous question.
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