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Stevie's Scooters plans to sell a standard scooter for $250 and a chrome scooter for $300. Slevie's purchases the standard scooter for $125 and the

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Stevie's Scooters plans to sell a standard scooter for $250 and a chrome scooter for $300. Slevie's purchases the standard scooter for $125 and the chrome scooter for $150. Stevie's expects to sell one standard scooter for every three chrome scooters. Stevie's monthly fixed costs are $ 158,125. Read the requirements Requirement 1. How many of each type of scooter must Stevie's Scooters sell each month to break even? Start by selecting the formula and entering the amounts to compute the breakeven point in units for the package" of products-total scooters to be sold. (Enter a "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) Fixed costs Target profit ) + Weighted-avg. CM per unit Required sales in units (S 158,125 + S 0 1,100 + 143.75 How many of each type of scooter must Stevie's Scooters sell each month to break even? Stevie's must sell 275 standard scooters and 825 chrome scooters to break even Requirement 2. How many of each type of scooter must Stevie's Scooters sell each month to earn $218,500? Start by selecting the formula and entering the amounts to compute the targeted sales dollars required to eam for $218,500 for the 'package" of productstotal scooters to be sold. (Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted average contribution margin.) Fixed costs Target profit ) + Weighted-avg. CM per unit = Required sales in units S 158,125 + S 218,500 143.75 2,620 = To reach the target operating income. Stevia's must sell 655 standard scooters and 1,965 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 are standard scooters and two are chrome scooters. Will the breakeven point of total scooters increase or decrease? Why? (Calculation not required.) Each standard scooter contributes to profits while each chrome scooter contributes to profits. Therefore, the increase in sales of standard scooters and decrease in sales of chrome scooters would cause the weighted-average contribution margin to and the breakeven point to

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