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 Dollars Mod 0 $ 0 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 $1,080,000,000. 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 Dollars Mod 0 $ 0 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 $1,728,000,000. 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…
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.
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: Basic $ 19.00 $ 12.00 36,000 Custom $ 54.00 $ 33.00 24,000 Selling price per bed Variable cost per bed Expected sales (beds) The total fixed costs for the company are $396,900. 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. Note: Do not round Intermediate calculations. 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? Note: Do not round intermediate calculations.
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?
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?
answer the following questions, which is the number 1 to 5. Show your complete solution/computation
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…
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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.
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…
Ramada Company produces one golf cart model. A partially complete table of company costs follows: Number of golf carts produced and sold Total costs Variable costs Fixed costs per year Total costs Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit Required: 1. Complete the table. 800 1,000 1,200 $ ? $ 600,000 ? 360,000 $ ? ? ? $ 960,000 ? ? ? ? ? ? ? ? ? ? 2. Ramada sells its carts for $1,500 each. Prepare a contribution margin income statement for each of the three production levels given in the table. 4. Calculate Ramada's break-even point in number of units and in sales revenue. Ramada sells its carts for $1,500 each. 5. Assume Ramada sold 450 carts last year. Without performing any calculations, determine whether Ramada earned a profit last year. 6. Calculate the number of carts that Ramada must sell to earn $90,000 profit. Ramada sells its carts for $1,500 each. 7. Calculate Ramada's degree of operating leverage if it sells 1,050 carts. Ramada sells its…
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