Red Rider makes three types of electric scooters. The companys total fixed cost is $1,296,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow:

Selling Price Variable Cost Percent of Total Unit Sales

Mod. $2,200. $1,900. 30

Rad. $3,700. $3,000. 50

X-treme $6,000. $5,000. 20

a. What is Red Riders break-even point in units and sales dollars?

Units. Dollars

Mod

Rad

X-treme

Total

b. If the company has an after-tax income goal of $1 billion and the tax rate is 50 percent, how many units of each type of scooter must be sold for the goal to be reached at the current sales mix?

Units. Dollars

Mod

Rad

X-treme

Total

c. Assume the sales mix shifts to 50 percent Mod, 40 percent Rad, and 10 percent X-treme. How does this change affect your answer to (a)? Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your calculations.

Units. Dollars

Mod

Rad

X-treme

Total