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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.
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