Break even under the product mix


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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Marketing Management: Break even under the product mix
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