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; roundnumber of units to the next highest whole unit in your calculations.UnitsDollarsMod$Rad$X-treme$Total$ MultiproductGreen 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 scooterfollow:ModSelling Price Variable Cost Percent of Total Unit SalesRad$2,2003,7006,000$1,9003,0005,000305020X-tremea. What is Green Rider's break-even point in units and sales dollars?ModRadUnitsDollarsX-tremeTotalb. If the company has an after-tax income goal of $1 billion and the tax rate is 50 percent,how many units of each type of scooter must be sold for the goal to be reached at thecurrent sales mix?ModUnitsDollars$RadX-tremeTotalc. Assume the sales mix shifts to 50 percent Mod, 40 percent Rad, and 10 percent X-treme.

Detailed explanation:aa. ModRadX-treme Selling…

Answered: c. Assume the sales mix shifts to 50…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 8E

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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 $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?
Aragon Company produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. What is the cost function in this case? a. P = 120x – 50x – 70,000b. C = 50x + 70,000c. R = 120x d. no answer
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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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)? $
Sheffield Corp. wants to sell a sufficient quantity of products to earn a profit of $250000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $200000, how many units must be sold to earn income of $250000? 2250000 units 100000 units 225000 units 56250 units
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