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Multiproduct Green Rider makes three types of electric scooters. The company's total fixed cost is $1,512,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Selling Price Variable Cost Percent of Total Unit Sales $2,200 $1,900 30 3,000 50 5,000 20 Mod Rad X-treme a. What is Green Rider's break-even point in units and sales dollars? Units Dollars Mod Rad Mod Rad 3,700 6,000 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? Dollars Units Mod Rad $ X-treme Total 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 $ $ $ $

Multiproduct Green Rider makes three types of electric scooters. The company's total fixed cost is $1,512,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Selling Price Variable Cost Percent of Total Unit Sales $2,200 $1,900 30 3,000 50 5,000 20 Mod Rad X-treme a. What is Green Rider's break-even point in units and sales dollars? Units Dollars Mod Rad Mod Rad 3,700 6,000 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? Dollars Units Mod Rad $ X-treme Total 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 $ $ $ $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ex.3.

Multiproduct Green Rider makes three types of electric scooters. The company's total fixed cost is $1,512,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Mod Rad X-treme a. What is Green Rider's break-even point in units and sales dollars? Units Dollars Mod Rad 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? Dollars Units X-treme Total Selling Price Variable Cost Percent of Total Unit Sales $2,200 $1,900 30 3,700 3,000 50 6,000 5,000 20 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 $ $ $ $ $
Transcribed Image Text:Multiproduct Green Rider makes three types of electric scooters. The company's total fixed cost is $1,512,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Mod Rad X-treme a. What is Green Rider's break-even point in units and sales dollars? Units Dollars Mod Rad 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? Dollars Units X-treme Total Selling Price Variable Cost Percent of Total Unit Sales $2,200 $1,900 30 3,700 3,000 50 6,000 5,000 20 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 $ $ $ $ $
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