QUESTION 55 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 60 $300 180 $200 100 40% Sales Mix 50% 10% Estimated Sales are $ 60,000,000 Estimated fixed costs are $ 18,000,000 What will happen to total profit if Jetson drops Rosie? A. The Fixed Costs will increase by $2,400,000 B. none of the listed choices C. Profits will decrease by $2,400,000 D. The Fixed costs will decrease by $2,400,000 E. Profits will decrease by 56,000,000 EXTRA CREDIT 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 Selling Price Variable Costs $200 100 $300 180 Sales Mix 50% 40% 10% 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 it 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? A Profits will increase by $360,000 3. none of the listed choices C. Profits will decrease by $360,000 D. Profits will increase by 5 480,000 E. Profits will decrease by $220,000