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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
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 Rosie Selling Price Variable Costs $150 60 $200 100 $300 180 Sales Mix 50% 40% 10% Estimated Sales are $ 60,000,000 Estimated fixed costs are $ 18,000,000. 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? O A. Profits will increase by $ 400,000 OB. Profits will increase by $ 250,000 OC. none of the listed choices OD. Profits will decrease by $ 406,778 O E. Profits will increase by $ 480,000
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