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 $500 $275 $25 medium-quality 300 135 15 three-quarters of the shop’s sales are medium-quality bikes. the shop’s annual fixed expenses are $65,000. (in the following requirements, ignore income taxes.) required: 1. compute the unit contribution margin for each product type. 2. what is the shop’s sales mix? 3. compute the weighted-average unit contribution margin, 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 income of $48,750? assume a constant sales mix.

How does your household gain from specialization and comparative advantage? (what is produced, what is not produced yet paid to a specialist to produce? )

Frugala is when sylvestor puts $2,000 into 10-year state bonds and $3,000 into 5-year aaa-rated bonds in steady hand hardware, inc. he buys the four state bonds at a 5 percent interest rate and the three steady hand bonds at a 6.5 percent rate. sylvestor also buys $1,500 worth of blue chip stocks, and $800 worth of stock in a promising new sportswear company that reinvests its earnings in new growth. 1. (a) what is the maturity for each of the bond groups sylvestor buys? (b) the coupon rate? (c) the par value?

crow design, inc. is a web site design and consulting firm. the firm uses a job order costing system in which each client is a different job. crow design assigns direct labor, licensing costs, and travel costs directly to each job. it allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. direct labor hours (professional) 6,250 hours direct labor costs ($1,800,000 support staff salaries ,000 computer ,000 office ,000 office ,000 in november 2012, crow design served several clients. records for two clients appear here: delicious treats mesilla chocolates direct labor 700 hours 100 hours software licensing $ 4,000 $400 travel costs 8,000 1. compute crow design’s direct labor rate and its predetermined indirect cost allocation rate for 2012. 2. compute the total cost of each job. 3. if simone wants to earn profits equal to 50% of service revenue, how much (what fee) should she charge each of these two clients? 4. why does crow design assign costs to jobs?