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Learning Objective 5 2. 340 standards E21-40 Calculating breakeven point for two products Stewart's Scooters plans to sell a standard scooter for $120 and a
Learning Objective 5 2. 340 standards E21-40 Calculating breakeven point for two products Stewart's Scooters plans to sell a standard scooter for $120 and a chrome scooter for $160. Stewart's purchases the standard scooter for $30 and the chrome scooter for $40. Stewart's expects to sell one standard scooter for every three chrome scooters. Stewart's monthly fixed costs are $85,500. Requirements 1. How many of each type of scooter must Stewart's Scooters sell each month to break even? 2. How many of each type of scooter must Stewart's Scooters sell each month to earn $67,500? Requirement 1 Standard Chrome Total Scooter Scooter Contribution Margin Weighted Average Contribution Margin per Unit Required Sales in Units = Units Calculate below the number of required sales of Standard Scooters to break even Calculate below the number of required sales of Chrome Scooters to break even Requirement 2 Required Sales in Units = 1 Units Calculate below the number of required sales of Standard Scooters to earn Target Profit Calculate below the number of required sales of Chrome Scooters to earn Target Profit
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