MultiproductGreen Rider makes three types of electric scooters. The company’s total fixed cost is $1,080,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Selling Price Variable Cost Percent of Total Unit Sales Mod $2,200 $1,900 30 Rad 3,700 3,000 50 X-treme 6,000 5,000 20 a. What is Green Rider’s break-even point in units and sales dollars? Units Dollars Mod Rad X-treme Total b. If the company has an after-tax income goal of $1 billion and the tax rate is 50 percent, how many units of each type of scooter must be sold for the goal to be reached at the current sales mix? Units Dollars Mod Rad X-treme Total c. Assume the sales mix shifts to 50 percent Mod, 40 percent Rad, and 10 percent X-treme. How does this change affect your answer to (a)?Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your calculations. Units Dollars Mod Rad X-treme Total
MultiproductGreen Rider makes three types of electric scooters. The company’s total fixed cost is $1,080,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Selling Price Variable Cost Percent of Total Unit Sales Mod $2,200 $1,900 30 Rad 3,700 3,000 50 X-treme 6,000 5,000 20 a. What is Green Rider’s break-even point in units and sales dollars? Units Dollars Mod Rad X-treme Total b. If the company has an after-tax income goal of $1 billion and the tax rate is 50 percent, how many units of each type of scooter must be sold for the goal to be reached at the current sales mix? Units Dollars Mod Rad X-treme Total c. Assume the sales mix shifts to 50 percent Mod, 40 percent Rad, and 10 percent X-treme. How does this change affect your answer to (a)?Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your calculations. Units Dollars Mod Rad X-treme Total
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Multiproduct
Green Rider makes three types of electric scooters. The company’s total fixed cost is $1,080,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow:
| Selling Price | Variable Cost | Percent of Total Unit Sales | |
|---|---|---|---|
| Mod | $2,200 | $1,900 | 30 |
| Rad | 3,700 | 3,000 | 50 |
| X-treme | 6,000 | 5,000 | 20 |
a. What is Green Rider’s break-even point in units and sales dollars?
| Units | Dollars | |
|---|---|---|
| Mod |
|
|
| Rad |
|
|
| X-treme |
|
|
| Total |
|
|
b. If the company has an after-tax income goal of $1 billion and the tax rate is 50 percent, how many units of each type of scooter must be sold for the goal to be reached at the current sales mix?
| Units | Dollars | |
|---|---|---|
| Mod |
|
|
| Rad |
|
|
| X-treme |
|
|
| Total |
|
|
c. Assume the sales mix shifts to 50 percent Mod, 40 percent Rad, and 10 percent X-treme. How does this change affect your answer to (a)?
Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your calculations.
| Units | Dollars | |
|---|---|---|
| Mod |
|
|
| Rad |
|
|
| X-treme |
|
|
| Total |
|
|
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