Question

Scooters plans to sell a motorized standard scooter for 40$ and a motorized chrome scooter for 60. Scooters purchases the standard scooter for30$ and the chrome scooter for 35$ . Scooters expects to sell two chrome scooters for every three standard scooters. ​Scooters' monthly fixed expenses are 14400 . How many of each type of scooter must Scooters sell monthly to break​ even? To earn 12000 ​? ​First, identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach. ( + ) / = Break-even sales in units ​Next, compute the​ weighted-average contribution margin per unit. First identify the formula​ labels, then complete the calculations step by step. Deduct: Weighted-average contribution margin per unit Standard Chrome Total How many of each type of scooter must Scooters sell monthly to​ break-even? must sell nothing standard scooters and nothing chrome scooters to​ break-even. How many of each type of scooter must Scooters sell monthly to earn ​? To reach the target operating​ income, must sell nothing standard scooters and nothing chrome scooters.

Answer 1

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Scooters
Answer 1	Standard	Chrome	Total	Note
Price per unit	40.00	60.00
Less: Variable cost per unit	30.00	35.00
Contribution per unit	10.00	25.00		A
Sales Mix	3.00	2.00	5.00	B
Total contribution per unit	30.00	50.00	80.00	C=A*B
Weighted average contribution per unit			16.00	D=C/B
Fixed costs			14,400.00	E
Total Break even units			900.00	F=E/O
Break even units- Product wise	540.00	360.00	900.00	G=F/B*B
Answer 2
Fixed costs			14,400.00
Operating income			12,000.00
Desired contribution			26,400.00	J
Units to be sold			1,650.00	H=J/D
Units to be sold- Product wise	990.00	660.00	1,650.00	I=H/B*B
Answer 3	Standard	Note
Contribution per unit	10.00	See A
Fixed costs	14,400.00	See E
Break even units	1,440.00	K=E/A
Answer 4	Chrome
Contribution per unit	25.00	See A
Fixed costs	14,400.00	See E
Break even units	576.00	L=E/A
Answer 5	Standard
Contribution per unit	10.00	See A
Desired contribution	26,400.00	See J
Units to be sold	2,640.00	M=J/A
Answer 6	Chrome
Contribution per unit	25.00	See A
Desired contribution	26,400.00	See J
Units to be sold	1,056.00	N=J/A