Racing Wheels Bicycle Shop sells racing bicycles. For the purposes of a , the shop owner has divided sales into two categories, as follows
Three-quarters of the shop’s sales are mountain bikes. The shop’s annual fixed costs are $390
(In the following requirements, ignore income taxes.)
Required:
1. Calculate the unit for each product type
2. What is the shop’s sales mix?
3. Calculate the weighted average unit , assuming a constant sales mix.
4. What is the shop’s break-even sales volume in dollars? Assume a constant sales mix.
5. How many bicycles of each type must be sold to earn a target net profit of $409 500? Assume a constant sales mix
Enjoy 24/7 customer support for any queries or concerns you have.
Phone: +1 213 3772458
Email: support@gradeessays.com