Multiproduct Green Rider makes three types of electric scooters. The company's total fixed cost is $1,728,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Selling Price Variable Cost Percent of Total Unit Sales Mod Rad X-treme $2,200 3,700 6,000 $1,900 3,000 5,000 30 50 20 a. What is Green Rider's break-even point in units and sales dollars? Mod Rad X-treme Total Units 810,000 1,350,000 ✓ 540,000 ✓ 2,700,000 $ Dollars $ 1,782,000,0✓ 4,995,000,00✓ 3,240,000,00✓ 10,017,000, b. If the company has an after-tax income goal of $1.6 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? Mod Rad Units 2,685,000 x $ Dollars 0 % 0% 0x X-treme Total 0% 0% $ 0 % 0% 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 0 * $ 0x Rad 0% $ 0% X-treme 0% $ 0 % Total 0% $ 0 %

Multiproduct Green Rider makes three types of electric scooters. The company's total fixed cost is $1,728,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Selling Price Variable Cost Percent of Total Unit Sales Mod Rad X-treme $2,200 3,700 6,000 $1,900 3,000 5,000 30 50 20 a. What is Green Rider's break-even point in units and sales dollars? Mod Rad X-treme Total Units 810,000 1,350,000 ✓ 540,000 ✓ 2,700,000 $ Dollars $ 1,782,000,0✓ 4,995,000,00✓ 3,240,000,00✓ 10,017,000, b. If the company has an after-tax income goal of $1.6 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? Mod Rad Units 2,685,000 x $ Dollars 0 % 0% 0x X-treme Total 0% 0% $ 0 % 0% 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 0 * $ 0x Rad 0% $ 0% X-treme 0% $ 0 % Total 0% $ 0 %

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...

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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 Rad $2,200 3,700 6,000 $1,900 3,000 5,000 30 50 20 X-treme a. What is Green Rider's break-even point in units and sales dollars? Mod Rad X-treme Total Units Dollars 0 $ 0 0 0 0 $ 0 0 0 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? Mod Rad X-treme Total 0 Units Dollars 0 $ 0 0 0 0 $ 0 0 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…
Multiproduct Green Rider makes three types of electric scooters. The company's total fixed cost is $648,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Mod Selling Price Variable Cost Percent of Total Unit Sales Rad $2,200 3,700 6,000 $1,900 3,000 5,000 30 50 20 X-treme a. What is Green Rider's break-even point in units and sales dollars? Mod Rad Units Dollars 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? Mod Units Dollars $ Rad X-treme Total c. Assume the sales mix shifts to 50 percent Mod, 40 percent Rad, and 10 percent X-treme.
Snow Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below. Basic Basic Plus Premium Total Units sold 750 450 300 1,500 Selling price $250 $400 $800 Variable cost $195 $285 $415 The company’s total fixed costs to produce the filtration systems are $180,700. (a) Determine the sales mix as a function of units sold for the three products. Basic Basic Plus Premium The sales mix as a function of units sold % % %
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Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products from an outside supplier. The supplier charges Vista $1.45 per switch. Vista’s CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows: Machine A Machine B Annual fixed costs $ 108,900 $ 145,000 Variable cost per switch 0.46 0.20 Required: 1. For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost? 2. What volume level would produce the same total costs regardless of the machine purchased? 3. What is the most profitable alternative for producing 150,000 switches per year and what is the total cost of that alternative?
Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products from an outside supplier. The supplier charges Vista $5.20 per switch. Vista 's CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows: Machine A Machine B Annual fixed costs $ 582, 450 $ 792, 100 Variable cost per switch 1.67 0.75 Required: 1. For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost? 2. What volume level would produce the same total costs regardless of the machine purchased? 3. What is the most profitable alternative for producing 230,000 switches per year and what is the total cost of that alternative?
Drone Concepts, Inc. (DCI) manufacturers a line of drones that are distributed to large retailers. The line consists of four models of drones. The following data is available regarding the models: DCI Selling Price Variable Cost Demand/Year Model per Unit per Unit (units) Model D1 $735 $115 1,535 Model D2 $515 $110 2,865 Model D3 $625 $105 3,535 Model D4 $765 $135 3,300 Drone Concepts is considering the addition of a fifth model to its line of drones. This model would be sold to retailers for $950. The variable cost of this unit is $415. The demand for the new Model D5 is estimated to be 2,000 units per year. Sixty percent of these unit sales of the new model is expected to come from other models already being manufactured by Drone Concepts (10 percent from Model D1, 30 percent from Model D2, 40 percent from Model D3, and 20 percent from Model D4). Drone Concepts will incur a fixed cost of $350,000 to add the new model to the line. Based on the preceding data, should DCI add the new…
Cox Electric makes electronic components and has estimated the following for a new design of one of Its products. Fixed Cost = $15,000 Material Cost per Unit = $0.19 Labor Cost per Unit = $0.14 MY NOTES ASK YOUR TEACHI Revenue per Unit = $0.69 Note that fixed cost is incurred regardless of the amount produced. Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells all that it produce profit is calculated by subtracting the fixed cost and total variable cost from total revenue. If Cox Electric makes 43,100 units of the new product, what is the resulting profit (In whole dollars)? $
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Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: Product Sales Priceper Unit Variable Costper Unit Model 101 $280 $180 Model 201 345 220 Model 301 395 250 The current product mix is 4:3:2. The three models share total fixed costs of $532,500. A. Calculate the sales price per composite unit. Sales price ? per composite unit B. What is the contribution margin per composite unit? Contribution margin ? per composite unit C. Calculate Manatoah’s break-even point in both dollars and units. Break-even point in dollars ? Break-even point in units ? unit D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales Model 101 Model 201 Model 301 Total Sales Variable Costs Model 101 Model 201 Model 301…
Dellcom Inc. sells two products: a regular and a deluxe version. The owner would like to better understand the impact of the sales mix on the company's sales. The following information is available: Regular Deluxe Sales price per unit Variable cost per unit $38 $61 $15 $34 The company has total fixed costs of $384,615 for the year and they sell 9 Regular products for every 4 Deluxe product. The owner would like to know, given the sales mix, how many units of each product the company must sell per year to break even. The company must sell units of the Regular product. Enter the number of units given the current sales mix. The company must sell units of the Deluxe product. Enter the number of units given the current sales mix.
Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are as follows: Selling price per bed Variable cost per bed Expected sales (beds) The total fixed costs for the company are $403,200. Basic $24.00 $ 17.00 66,000 Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? Required A Required B Complete this question by entering your answers in the tabs below. Custom $ 59.00 $38.00 44,000 Basic beds Custom beds Required C Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. Note: In your computations, round up the total units to break-even to the nearest whole number and round other intermediate…