Question
Use the following information to answer questions 37 to 41: Super Scooters Pty Ltd makes scooters.Fixed costs are $175,000 per year.Each scooter requires raw materials
Use the following information to answer questions 37 to 41:
Super Scooters Pty Ltd makes scooters.Fixed costs are $175,000 per year.Each scooter requires raw materials of $35, and takes two labour hours to make at a cost of $25 per labour hour by casual employees.Scooters are sold for $150 each.Super Scooters Pty Ltd anticipates selling 4,000 scooters per year.
1-What is the break-even point in number of scooters? Show your workings.
2-What is the breakeven pointin dollars (sales revenue)?Give your answer to the nearest whole dollar (0 d.p.)
3-What is the margin of safety for their planned sales level? Round your answer to nearest number of whole units.
4-Super Scooters Pty Ltd decides it would like to earn $120,000 profit per year from selling the scooters. How many scooters do they need to sell each year to do so?Show your workings.
5-Super Scooters Pty Ltd decides it would like to earn $120,000 profit per year from selling the scooters. How many scooters do they need to sell each year to do so?Show your workings.
6-Name twoqualitativefactors Super Scooters Pty Ltd shouldtake into consideration in deciding whether to accept or reject the order.
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