Calculate the number of each type of bike

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Reference no: EM132666870

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

Problem 1: Calculate the number of each type of bike that the company would need to sell in order to break even under this product mix.

Reference no: EM132666870

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