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Compute the number of each type of bicycle

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Reference no: EM132541535

Active Kids manufactures Children's bicycles. It has fixed costs of $5,360,000. Active Kid's sales mix and contribution margin per unit are shown as follows:

                            Sales Mix               Contribution Margin

Basic                          20%                         $120

Cruiser                           55%                         $ 60

Trail                              25%                           $ 40

Instructions

Question 1: Compute the number of each type of bicycle that the company would need to sell in order to break even under this product mix.

Reference no: EM132541535

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