Business, 16.10.2019 02:30 stefancvorovic1
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 typesales priceinvoice costsales commissionhigh-quality$1,550 $690 $110 medium-quality 770 470 100 three-quarters of the shop’s sales are medium-quality bikes. the shop’s annual fixed expenses are $209,250. (in the following requirements, ignore income taxes.) required: compute the unit contribution margin for each product type. what is the shop’s sales mix? compute the weighted-average unit contribution margin, assuming a constant sales mix. what is the shop’s break-even sales volume in dollars? assume a constant sales mix. how many bicycles of each type must be sold to earn a target net income of $101,250? assume a constant sales mix.
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Tim’s bicycle shop sells 21-speed bicycles. for purposes of a cost-volume-profit analysis, the shop...
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