Question
In: Accounting
Red Rider makes three types of electric scooters. The company’s total fixed cost is $1,296,000,000. Selling...
Red Rider makes three types of electric scooters. The company’s total fixed cost is $1,296,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow:
Selling Price Variable Cost Percent of Total Unit Sales
Mod. $2,200. $1,900. 30
Rad. $3,700. $3,000. 50
X-treme $6,000. $5,000. 20
a. What is Red Rider’s break-even point in units and sales dollars?
Units. Dollars
Mod
Rad
X-treme
Total
b. If the company has an after-tax income goal of $1 billion and the tax rate is 50 percent, how many units of each type of scooter must be sold for the goal to be reached at the current sales mix?
Units. Dollars
Mod
Rad
X-treme
Total
c. Assume the sales mix shifts to 50 percent Mod, 40 percent
Rad, and 10 percent X-treme. How does this change affect your
answer to (a)?
Note: Do not round until you determine the number
of units of each product; round number of units to the next highest
whole unit in your calculations.
Units. Dollars
Mod
Rad
X-treme
Total
Solutions
Expert Solution
Comment below if you have any query i will
solve it asap !! thanks
ekkarill92 answered 2 years agoRelated Solutions
On February 1, 2020, Concord Ltd. began selling electric scooters that it purchased exclusively from Ionone...
On February 1, 2020, Concord Ltd. began selling electric
scooters that it purchased exclusively from Ionone Motors Inc.
Ionone Motors offers volume rebates based on the volume of annual
sales to its customers and calculates and pays the rebates at its
fiscal year end, December 31. Concord has a September fiscal year
end and uses a perpetual inventory system. The rebate offer that
Concord received is for a $75 rebate on each scooter that is
purchased in excess of 150...
Your company makes widgets. The total cost of production consist of $1,500,000 in fixed cost +...
Your company makes widgets. The total cost of production consist
of $1,500,000 in fixed cost + variable costs of $150 per widget
produced. If your firm makes 10,000 widgets what will the total
cost per widget produced?
Quantity Total Cost Total Fixed Cost Total Variable Cost Average Fixed Cost Average Total Cost Average...
Quantity
Total Cost
Total Fixed Cost
Total Variable Cost
Average Fixed Cost
Average Total Cost
Average Variable Cost
Marginal Cost
0
30
1
75
2
150
3
255
4
380
5
525
6
680
7
840
8
1010
9
1200
Given the quantity and total cost, calculate for total fixed
cost, total variable cost, average fixed cost, average total cost,
average variable cost, and marginal cost.
Excel formulas would be nice but not required.
Labor Q Total Fixed Cost Total Variable Cost Total Cost Marginal Cost Average Fixed Cost Average...
Labor
Q
Total Fixed Cost
Total Variable Cost
Total Cost
Marginal Cost
Average Fixed Cost
Average Variable Cost
Average Total Cost
0
0
25
0
1
4
25
25
2
10
25
50
3
13
25
75
4
15
25
100
5
16
25
125
(a) Complete the blank columns.
(b) Assume the price of this product equals $10.
What’s the profit-maximizing output (q)? Note: managers
maximize profits by setting MR=MC and under
perfectly competitive markets, MR=Price. Thus,
maximize profit...
Draw a graph showing the Total Fixed Cost, Total Variable Cost, and Total Cost curves.
INSTRUCTIONS FOR TABLE 1 and Two Graphs-21 points1) Calculate the Total Cost (TC) for each level of output. (3
points)2) Calculate the Average Fixed Cost
(AFC) for each level of output. (3 points)3) Calculate the Average Variable
Cost (AVC) for each level of output. (3 points)4) Calculate the Average Total Cost
(ATC) for each level of output. (3 points)5) Calculate the Marginal Cost (MC)
for each level of output. (3 points)Using the data from Table 1 draw two graphs:Draw...
Given the following total cost schedule of a firm, derive the total fixed cost and total...
Given the following total cost schedule of a firm, derive the
total fixed cost and total variable cost schedules of the firm, and
from them derive the average fixed cost, average variable cost,
average total cost, and marginal cost schedules of the firm.
Q1. Answer question above using the table below:
Quantity TC($) TFC TVC AFC AVC ATC MC
0
1
2
3
4
5
Q 0 1 2 3 4 5
TC $30 50 60 81 118 180
Sara sells two types of cakes from home. The total fixed cost for every month is...
Sara sells two types of cakes from home. The total fixed cost
for every month is budgeted at 200 BD. The labor cost per unit is
equal to 2 BD. Sara sells 150 cake every month. The selling prices
is 15 BD. The ingredient cost is 4 BD per cake.
Sara wants to know what price she must charge to generate enough
revenue to cover her costs. With Break-Even Analysis, Sara can
compare different pricing options and calculate how many...
A firm incurred a total fixed cost of $400,000 and total variable cost of $600,000 to...
A firm incurred a total fixed cost of $400,000 and total
variable cost of $600,000 to produce 50,000 units of output.
What are the average fixed cost (AFC), average variable cost
(AVC), and average total cost (ATC)?
Currently, the unit selling price of a product is $310, the unit variable cost is $250, and the total fixed costs are $918,000.
Currently, the unit selling price of a product is $310, the unit variable cost is $250, and the total fixed costs are $918,000. A proposal is being evaluated to increase the unit selling price to $340.
a. Compute the current break-even sales (units).units
b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.units
Break-Even Sales and Sales to Realize Income from Operations
For the current year ended October 31,...
The table below shows part of the cost structure (total fixed cost, total variable cost, and...
The table below shows part of the cost structure (total fixed
cost, total variable cost, and total cost) for a typical producer
of olive oil -- a perfectly competitive industry.
Copy the table into Excel and use it to calculate average total
cost and marginal cost for all quantities from 1 to 10. Use Excel
(following the hints in QSet 2, #9) to produce a diagram of the
firm’s average total cost and marginal cost curves.
If the price of...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- The three principal rays for converging (concave) mirrors: 1. Any incident ray parallel to the principal...
- Given a connected graph G with n vertices. We say an edge of G is a...
- Let iqsort(A, 1, n) be an algorithm that sorts an array A with n integers. It...
- Write a program to print the number of class assignments you have done so far, the...
- This is in C# on visual Basic Write a base class that has two property members:...
- Greta, an elderly investor, has a degree of risk aversion of A = 3 when applied...
- Should certain categories of drugs be decriminalized? What might the impact be – in the short-...
ADVERTISEMENT