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QUESTION 53 Jetson's Dynamics makes scooters. The company has three models of scooters, the Astro, the Elroy and the Rosie. The controller has prepared the
QUESTION 53 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 $150 $300 Selling Price Variable Costs 60 $200 100 180 Sales Mix 50% 10% Estimated Sales are $ 60,000,000 Estimated fixed costs are $ 18,000,000 The estimated weighted average contribution margin is A. 40.0% B. 59.0% C. 47.7% 0.54.0% E none of the listed choices QUESTION 54 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 $200 $300 180 100 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? A. Profits will increase by $ 250,000 B. Profits will decrease by $ 406,778 C. Profits will increase by $ 400,000 D. none of the listed choices E. Profits will increase by $ 480,000
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