hi i need an answer for my case study. thanks ahead!

B D E F G A Question 3 - Product line Analysis (29 marks) The owners of Mountain Sports Ltd. are currently reviewing a proposal to adopt a new product line - BMX Bicycles. This new a product line will be compatible with the Mountain Bikes and open a new target market, younger customers. It is anticipated that the BMX line be introduced next spring. Management has estimated the following: Expected sales in bikes Average selling price per bike Purchase cost (COGS) per bike Assembly cost per bike Sales clerks required - seasonal Monthly Salary per Sales Clerk Sales commissions Advertising campaign (annual cost) $ S $ 480 364.00 112.00 63.00 2 1,164 15% 4,195 $ $ The additional sales clerks required for the BMX line will only work for four months of the year (May to August). Required: Part A (Chapter 6) (13 marks): Prepare a CVP income statement (for a one year period) to determine the segment margin for the new BMX Bikes product line. D E G BMX Product Line Budgeted CVP Income Statement For the year ended December 31, 2020 TOTAL Per Bike 480 Percentage Number of Bikes Sales Revenue Less: Variable Costs (must be listed alphabetically) 100% Total Variable Costs Less: Fixed Costs (must be listed alphabetically) Total Fixed Cost Required Part B (Chapter 6 & 7) (7 marks): This new BMX bike product line will create an increase in sales of two departments: Accessories (refer to Q2 segmented income statement for department information). However, due to the floor space required for retailing BMX Bikes, management estimates that sales of Mountain Bikes will decrease (hint: remember that variable costs will also change when sales change). Required Part Pricing (Chapter 19 marks) Assume management has decided to go ahead with offering the BMX product line The owners of Mountain Sports are concerned about the ability of OMX to cover its feed costs and provide a good return on investment (ROI). An Investment is required for the necessary factures, display racks, and Inventory. The owners have provided the minimum return on investment below. Use the cost information and unit sales provided in part above to answer the questions below. 51 52 Surested selling price 364.00 53 Required investment in assets 205,000 54 Minimum return on investment 14% 55 56 Calculate the following: Unit product cost costs incurred to get the bike ready 57 for sale Total selling & administrative costs (costs that help sell 58 the bike or run the business as a whole) 9 Selling & administrative cost per bike 0 Desired return on investment per bike -1 Markup percentage using absorption costing 2 Suggested selling price using absorption costing 3 + Is the skrested selling price (noted in part A) sufficient to earn the required return expected by the Are there any other considerations management should take into account before adding the product line