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 $ 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.
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 $ 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.
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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