Information in question 42 use for questions 42-47
QUESTION 42 Use the following information for questions 42-47. Jetson's Dynamics makes scooters. The company has three models of scooters, the Astro, the Elroy and the Rosie. The controller has prepared the following estimates for next year. (All projections are on a per scooter basis). Astro Elroy $120 $150 60 90 Rosie $300 120 Selling Price Variable Costs Estimated sales are: Astro, $48,000,000, Elroy $60,000,000, and Rosie, $12,000,000 Estimated fixed costs are $17,600,000 The estimated weighted average contribution margin is: O A 54.0% B. $26.00 C. 536.00 D. none of these E. 46.0% QUESTION 43 What will happen to total profit if Jetson drops Rosie? A none of these B. Profits will decrease by $4,800,000 C. Profits will decrease by $7,200,000 D. The Fixed costs will decrease by $1,000,000 E. The Fixed Costs will increase by $1,000,000 QUESTION 44 Go back to the last question. What will be the effect on profits if Jetson spends the $20,000 on advertising and the sales of Elroy increases 5,000 units, but the sales of Rosie decreases by 1,000 units? A. Profits will decrease by $100,000 B. Profits will increase by $100,000 C. Profits will increase by $140,000 D. Profits will decrease by $140,000 E. none of these QUESTION 45 The number of units of Astro sold at break-even are approximately: A. 163,768 B. 127,536 C. 66,667 D. none of these E. 60,620 QUESTION 46 The sales needed to make $5,000,000 are: O A. $ 49,130,434.78 B. None of these C. $ 32,608,695.65 D. $ 30,000,000.00 E. $ 18,518,518.52 QUESTION 47 Jetson believes they can increase the sales of Elroy by 5,000 units by spending $20,000 on additional advertising. If they do this and the sales do increase as planned, what will be the effect on profits? A. Profits will increase by $280,000 B. Profits will increase by $340,000 OC. Profits will increase by $320,000 D. none of these E. Profits will increase by $300,000