Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2) how many of each tyoe of scooter must racer scooter sell montly to earn $8500? Please provide explanation for both the question Speedy Scooters

image text in transcribed2) how many of each tyoe of scooter must racer scooter sell montly to earn $8500?

Please provide explanation for both the question

Speedy Scooters plans to sell a motorized standard scooter for $60 and a motorized chrome scooter for $75. Speedy Scooters purchases the standard scooter for 550 and the chrome scooter for $55. Speedy Scooters expects to sell two chrome scooters for every three standard scooters Speedy Scooters' monthly fixed expenses are $16,800 How many of each type of scooter must Speedy Scooters sell monthly to break even? To eam $9,8007 First, Identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach Fuad expenses Operating income )/ Weighed-avg CM per unit - Break-even sales in units Next, compute the weighted average contribution margin per unit First identify the formula labels, then complete the calculations step by step Standard Chrome Total Sale price per unit 5 605 75 Deduct Variable expense per un (50) (55) Contribution margin per unit 5 105 20 Sales mix in units 3 2 5 5 70 Contribution margin 305 40 $ Weighted average contribution margin per unit 14 How many oleach type of scooter must Speedy Scooters sell monthly to break-even? Speedy most se standard scoolers and chrome scooters to break even

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions