Speedy'sSpeedy's

Scooters plan to sell a standard scooter for $ 650 and a chrome scooter for $950.

Speedy'sSpeedy's purchases the standard scooter for $400 and the chrome scooter for $400. Speedy's expects to sell one standard scooter for every three chrome scooters monthly fixed costs are $399,000.

1.	How many of each type of scooter must Speedy'sSpeedy's Scooters sell each month to break even?
2.	How many of each type of scooter must Speedy'sSpeedy's Scooters sell each month to earn $855,000 ?
3.	Suppose Speedy'sSpeedy'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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Complete the table below for contribution margin per unit, total contribution margin, and contribution margin ratio:

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Compute the missing information, starting with scenario A, then for scenarios B and C. (Enter the contribution margin ratio to nearest percent, X%.)

	A
Number of units	2,064	units
Sale price per unit	$250
Variable costs per unit	125
Calculate:
Contribution margin per unit
Total contribution margin
Contribution margin ratio		%

	A		B		C
Number of units	2,064	units	3,060	units	3,570	units
Sale price per unit	$250		$1,250		$5,440
Variable costs per unit	125		750		2,720
Calculate:
Contribution margin per unit
Total contribution margin
Contribution margin ratio