Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

need help with both otherwise I will thumbs down 12) V-Lux sells three bike models - the S-type, X-type, and Z-type. The S-type is the

need help with both otherwise I will thumbs downimage text in transcribed

12) V-Lux sells three bike models - the S-type, X-type, and Z-type. The S-type is the company's best-selling product. For every seven units of S-type sales, the company sells two units of X-type, and one unit of Z-type (7-2-1 ratio). The company has monthly fixed costs of $47,940. Selling prices and variable costs are as follows: Price Variable Cost S-type: $ 800 $ 480 X-type: $2,600 $1,430 Z-type: $6,200 $2,790 How many unit sales of the S-type. X-type, and Z-type are required to breakeven? a) 42 S-types; 12 X-types, and 6 Z-types. b) 40 S-types; 5 X-types; and 9 Z-types. c) 35 S-types; 10 X-types; and 5 Z-types. d) 28 S-types; 8 X-types, and 4 Z-types. 13) Big Red is interested in opening a BBQ restaurant in Tulsa. Monthly fixed costs are expected to be $8,000. Variable costs are expected to be 57% of the $14 average meal price. A market analysis indicates that approximately 1,800 customers will frequent the restaurant in the targeted locale each month. If Big Red wants to generate before-tax profits of at least $2,500 per month, should they open the restaurant? a) YES b) NO

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

Recommended Textbook for

Financial And Managerial Accounting For MBAs

Authors: Peter D. Easton

6th Edition

9781618533593

Students also viewed these Accounting questions

Question

in writing

Answered: 1 week ago