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Compute the unit contribution margin for each product type

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Reference no: EM131711467

Question - Product Type Sales Price Invoice Cost Sales Commission

High Quality $1,000 $550 $50

Medium Quality 60 270 30

Seventy percent of the shop's sales are medium quality bikes. The shop's annual fixed expenses are $148.500 (In the following requirements, ignore income taxes)

1. Compute the unit contribution margin for each product type

2. What is the shop's sales mix?

3. Compute the weighted-average unit contribution margin, assuming a constant sales mix

4. What is the shop's break even sales volume in dollars? Assume constant sales mix

5. How many bicycles of each type must be sold to earn a target net income of $99,000? Assume a constant sales mix.

Reference no: EM131711467

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