Racing Wheels Bicycle Shop sells racing bicycles. For the p
Racing Wheels Bicycle Shop sells racing bicycles. For the purposes… Racing Wheels Bicycle Shop sells racing bicycles. For the purposes of a CVP analysis, the shop owner has divided sales into two categories, as follows: Product Type Sales Price Cost Sales Commission Road Bikes $2000 $750 $50 Mountain Bikes $1500 $575 $25 Three quarters of the shops sales are mountain bikes. The shops annual fixed costs are $390000. (for the following questions ignore income taxes.) Required: Calculate the unit contribution marking for each product type What is the shop’s sales mix Calculate the weighted average unit contribution margin, assuming a constant sales mix. What is the shops break even sales revenue in dollars? Assume a constant sales mix. How many bicycles of each type must be sold to earn a target net profit of $409500. Assume a constant sales mic. Accounting Business Financial Accounting
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