Question
Trail King manufactures mountain bikes. Its sales mix and contribution margin information per unit is shown as follows: Sales mix Contribution margin Destroyer 15% $120
Trail King manufactures mountain bikes. Its sales mix and contribution margin information per unit is shown as follows:
Sales mix Contribution margin
Destroyer 15% $120
Voyager 60% $ 60
Rebel 25% $ 40
It has fixed costs of $5,440,000.
Instructions
Calculate the number of each type of bike that the company would need to sell in order to break even under this product mix.
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele
10th edition
9780077515904, 007802529X, 77515900, 978-0078025297
