Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Multiproduct Green Rider makes three types of electric scooters. The company's total fixed cost is $2,592,000,000. Selling prices, variable cost, and sales percentages for
Multiproduct Green Rider makes three types of electric scooters. The company's total fixed cost is $2,592,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Selling Price Variable Cost Percent of Total Unit Sales Mod Rad $2,200 3,700 6,000 $1,900 3,000 5,000 30 50 20 X-treme a. What is Green Rider's break-even point in units and sales dollars? Units Dollars Mod Rad X-treme Total 1,215,000 $ 2,025,000 2,673,000,001 7,492,500,000 810,000 4,050,000 $ 4,860,000,000 15,025,500,0 b. If the company has an after-tax income goal of $2 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? Mod Rad Units 3,090,000 x $ 5,150,000 x Dollars 6,798,000,000 x 19,055,000,000 x X-treme 2,060,000 x 12,360,000,000 x Total 10,300,000 x $ 38,213,000,00 x 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 Mod Rad X-treme Total 2,445,283 * $ 1,956,226 * $ 489,057 $ 4,890,566 * $ 5,379,622,601 x 7,238,036,201 x 2,934,342,001 15,552,000,81 x
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started