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 $ $ $ $

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Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.