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Smartie's Scooters plans to sell a standard scooter for $700 and a chrome scooter for $1050. Smartie's purchases the standard scooter for $330 and the
Smartie's Scooters plans to sell a standard scooter for $700 and a chrome scooter for $1050. Smartie's purchases the standard scooter for $330 and the chrome scooter for $450. Smartie's expects to sell one standard scooter for every three chrome scooters. Smartie's monthly fixed costs are $499,100. 1. How many of each type of scooter must Smartie's Scooters sell each month to break even? 2. How many of each type of scooter must Smartie's Scooters sell each month to earn $976,500 ? 3. Suppose Smartie's expectation to sell one standard scooter for every three chrome scooters was incorrect and for every four scooters sold two are standard scooters and two are chrome scooters. Will the breakeven point of total scooters increase or decrease? Why? (Calculation not required.)
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