Question
Stevie's Scooters plans to sell a standard scooter for $200 and a chrome scooter for $210. Stevie's purchases the standard scooter for $50 and the
Stevie's Scooters plans to sell a standard scooter for $200 and a chrome scooter for $210. Stevie's purchases the standard scooter for $50 and the chrome for $70. Stevie's expects to sell one standard scooter for every three chrome scooters. Stevie's monthly fixed costs are $85,500.
Requirement 1: Start by selecting the formula and entering the amounts to compute the break even point in units for the "package" of products- total scooters to be sold.
Formula: ______+_____/_____= required sales
How many of each type of scooter must Stevie's sell each month to break even?
Stevie's must sell ____ standard scooters and _____ Chrome scooters to break even.
Formula: ______+_____/_____= required sales
Requirement 2: How many of each type of scooter must Stevie's sel to earn $119,700?
Formula: ______+_____/_____= required sales
Stevie's must sell ____ standard scooters and _____ Chrome scooters.
Requirement 3: Suppose Stevie's expectation to sell one standard scooter for every three chrome scooters was incorrect and for every four scooters sold two were standard and two were chrome. Will the break even point of total scooters increase or decrease?
Each standard scooter contributes $____ to profits while each chrome scooter contributes$_____ to profit.Therefore, the increase in sales of standard scooters and decrease in chrome scooters woud cause the weighted average contribution margin to _______ and the break even point to _______.
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