QUESTION 55 Astro 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). Elroy Rosie Selling Price $150 $200 $300 Variable Costs 100 Sales Mix 50% 40% 60 180 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 de increase as planned what will be the effect on profits? A. Profits will increase by $ 400,000 OB. Profits will increase by $ 250,000 OC. Profits will decrease by $ 406,778 D. Profits will increase by $ 480,000 O E none of the listed choices QUESTION 56 Astro the Elrow and the Rosie. The controller has prepared the following estimates for EXTRA CREDIT Jetson's Dynamics makes scooters. The company has next year. (All projections are on a per scooter basis). Astro Selling Price $150 Variable Costs 60 Sales Mix 50% Rosie $300 Estimated Sales are $ 60,000,000 Estimated fixed costs are $ 18,000,000 Go back to the information above. (Remember the information before question 53 is relevant also). What will be the effect on profits if Jetson spends an additional $20,000 on advertising and the sales of Elroy increases 5,000 scooters, but the sales of Rosie decreases by 1,000 units? O A. Profits will decrease by $360,000 B. none of the listed choices OC. Profits will increase by $ 480,000 OD. Profits will increase by $360,000 O E. Profits will decrease by $220,000 QUESTION 57 EXTRA CREDIT Rand's Jelly, Lid collected the following data about their monthly contribution margins from sales of jely Moonberty Yogiberry Merryberry Selling Price Variable Cost Contribution Margin Units Sold 12,000 8,000 10,000 Randi believes that she could increase sales of Yogiberry by 5,000 units per month if more attention were devoted to it and less to Moonberry Moonberry sales would decrease by 2,000 per month. What change in income would occur if this action were taken? A. Increase of $20,000 O B. none of the listed choices. OC. Decrease of $10,000 OD. Income would remain the same E. Increase of $10,000