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Sales and Product Mix

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Trail King manufactures mountain bikes. It has fixed costs of $5,360,000. Trail King's sales mix and contribution margin per unit is shown as follows:
Sales Mix Contribution Margin
Destroyer 20% $120
Voyager 55% $60
Rebel 25% $40
________________________________________

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

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This solution provides calculations for a problem involving sales and a product mix.

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  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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