Exercise 7-29 retail; cvp analysis with multiple products (lo 7-1, 7-2, 7-5) tim’s bicycle shop sells 21-speed bicycles. for purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: product type sales price invoice cost sales commission high-quality $ 2,000 $ 1,050 $ 110 medium-quality 1,100 770 40 three-quarters of the shop’s sales are medium-quality bikes. the shop’s annual fixed expenses are $239,400. (in the following requirements, ignore income taxes.) required: compute the unit contribution margin for each product type. what is the shop’s sales mix? compute the weighted-average unit contribution margin, assuming a constant sales mix. what is the shop’s break-even sales volume in dollars? assume a constant sales mix. how many bicycles of each type must be sold to earn a target net income of $128,250? assume a constant sales mix.
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Exercise 7-29 retail; cvp analysis with multiple products (lo 7-1, 7-2, 7-5) tim’s bicycle shop sel...
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