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Q1) BumpyRide Inc. manufactures commercial and residential riding lawnmowers. The com- pany sells one commercial mower per four residential mowers sold. Selling prices for the
Q1) BumpyRide Inc. manufactures commercial and residential riding lawnmowers. The com- pany sells one commercial mower per four residential mowers sold. Selling prices for the com- mercial and residential mowers are, respectively, S700 and $300. The variable selling and produe- tion costs are, respectively, S524 and $219. The company's annual fixed cost is $10,000. If the company's tax rate is 40% and it wants to earn $3,000 of income after tax next year, 1A) What are the target sales (in dollars)? 1B) What is the margin of safety in sales dollars
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