Stevie's Scooters plans to sell a standard scooter for $850 and a chrome scooter for $1350. Stevie's purchases the standard scooter for $450 and the chrome scooter for $600. Stevie's expects to sell...

Stevie's Scooters plans to sell a standard scooter for $850 and a chrome scooter for $1350. Stevie's purchases the standard scooter for $450 and the chrome scooter for $600. Stevie's expects to sell one standard scooter for every three chrome scooters. Stevie's monthly fixed costs are $715,500.

Requirement 1. How many of each type of scooter must Stevie's Scooters sell each month to break even?

Start by selecting the formula and entering the amounts to compute the breakeven point in units for the "package" of

products—total scooters to be sold. (Enter a "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.)

? ? ? ?

(	Fixed costs	+	Target profit	) ÷	Weighted-avg. CM per unit	=	Required sales in units
(		+		) ÷		=

Requirements

Dialog content starts

1.	How many of each type of scooter must Stevie'sScooters sell each month to break even?
2.	How many of each type of scooter must Stevie'sScooters sell each month to earn $1,192,500?
3.	Suppose Stevie's expectation to sell one standard scooter for every three chrome scooters was incorrect and for every four scooters sold two are standard scooters and two are chrome scooters. Will the breakeven point of total scooters increase or decrease? Why? (Calculation not required.)

Jun 10, 2022

SOLUTION.PDF

Stevie's Scooters plans to sell a standard scooter for $850 and a chrome scooter for $1350. Stevie's purchases the standard scooter for $450 and the chrome scooter for $600. Stevie's expects to sell...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment