Skippy's Scooters plans to sell a standard scooter for $250 and a chrome scooter for $300. Skippy's purchases the standard scooter for $125 and the chrome scooter for $150. Smartie expects tosell one standard scooter for every three chrome scooters. Skippy's monthly fixed costs are $158,125.Requirements1. How many of each type of scooter must Skippy's Scooters sell each month to break even?2. How many of each type of scooter must Skippy's Scooters sell each month to earn $218,500?Requirement 1. How many of each type of scooter must Skippy'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. Entercurrency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.)Required sales in units++)/

BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…

Answered: Skippy's Scooters plans to sell a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Stevie's Scooters plans to sell a standard scooter for $850 and a chrome scooter for $1350. Stevie's purchases the standard scooter for $450 and the chrome scooter for $600. Stevie's expects to sell one standard scooter for every three chrome scooters. Stevie's monthly fixed costs are $715,500. 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 ( + ) ÷ = Requirements Dialog…
Steve's scooters plans to sell a standard scooter for $160 and a chrome scooter for $200.00. Steve's purchases the standard scooter for $40 and the chrome scooter for $50. Steve expects to sell one standard scooter for every three chrome scooters. Steve's monthly fixed costs are $102, 600. How many of each type of scooter must Steve's scooters sell each month to break even?
Zippy Quadcopters plans to sell a standard quadcopter (toy drone) for $40 and a deluxe quadcopter for $60. Zippy purchases the standard quadcopter for $20 and the deluxe quadcopter for $30. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $25,200. How many of each type of quadcopter must Zippy sell monthly to breakeven? To earn $15,600? First identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach. (Abbreviations used: Avg. = average, and CM = contribution margin.) + ÷ Breakeven sales in units
Rally Quadcopters plans to sell a standard quadcopter (toy drone) for $45 and a deluxe quadcopter for $55. Rally purchases the standard quadcopter for $25 and the deluxe quadcopter for $30. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $23,100. How many of each type of quadcopter must Rally sell monthly to breakeven? To earn $15,400? First identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach. (Abbreviations used: Avg. = average, and CM = contribution margin.) ( Operating income Fixed expenses >/Weighed-avg. CM per unit Breakeven sales in units Next compute the weighted-average contribution margin per unit. First identify the formula labels, then complete the calculations step by step. Standard Deluxe Total Sale price per unit Deduct Variable expense per unit 45 35 55 30 Contribution margin per unit Sales mix in units Contribution…
Racer Quadcopters plans to sell a standard quadcopter (toy drone) for $54 and a deluxe quadcopter for $64. Racer purchases the standard quadcopter for $34 and the deluxe quadcopter for $44. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $18,000. How many of each type of quadcopter must Racer sell monthly to breakeven? To ean $12,000? First Identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach. (Abbreviations used: Avg. = average, and CM = contribution margin.) Fixed expenses Operating income Weighed-avg. CM per unit = Breakeven sales in units Next compute the weighted-average contribution margin per unit. First identify the formula labels, then complete the calculations step by step. Standard Deluxe Total Sale price per unit 54 $ 64 Deduct: Variable expense per unit Contribution margin per unit (34) (44) 20 $ 20 Sales mix in units 3…
Racer Quadcopters plans to sell a standard quadcopter (tay drone) for $45 and a deluxe quadcopter for $65. Racer purchases the standard quadcopter for $35 and the deluxe quadcopter for $45. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $9,800 How many of each type of quadcopter must Racer sell monthly to breakeven? To earn $10,500? First identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach. (Abbreviations used: Avg=average, and CM contribution margin) Breakeven sales in units
Sammy's Scooters plans to sell a standard scooter for $90 and a chrome scooter for $120. Sammy's purchases the standard for $45 and the chrome scooter for $30. Sammy's expects to sell one standard scooter for every three chrome scooters. Sammy's monthly fixed costs are $69300 1. How many of each type of scooter must Sammy sell each month to break even? 2. How many of each type of scooter must Sammy sell each month to earn $126000
Rapido Quadcopters plans to sell a standard quadcopter (toy drone) for $45 and a deluxe quadcopter for $75. Rapido purchases the standard quadcopter for $35 and the deluxe quadcopter for $45. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $21,600. How many of each type of quadcopter must Rapido sell monthly to breakeven? To earn $12,600?
Suko Na Ba Co. produces cellular phone cases. Each case requires a keypad which it also manufactures at a cost of P20 per unit, inclusive of fixed overhead cost of P5. Suko Na Ba Co. needs 50,000 units of this keypad annually. A supplier, Hindi Pa Co. has offered to sell to Suko Na Ba Corporation its keypad requirements at P24 per unit. If Suko Na Ba decides to buy the keypads, P2 per unit of the fixed overhead based on the annual estimate could be eliminated, and the facility previously used to produce the key pad could be rented to another company.If Suko Na Ba Co. outsource the keypads but does not rent the unused facility, it would __?
Rapido Quadcopters plans to sella standard quadoopter (toy drone) for $54 and a delue quadcopter for $74. Rapido purchases the standard quadcopter for $44 and the deluse quadcopter for $54. Management expects to sel wo dekove quadcopters for every three standard quadcopters The company's monthly foxed expenses are $11,200. How many of each type of quadcopter must Rapido sell monthly to breakeven? To eam $7,7007 First identity the formula to compute the sales in units at various levels of operating income using the contribubon margin approach (Abbreviations used Avg. average, and CM e contribution margin) Fied expenses Operating income Weighed-avg CM per unit Breakeven sales in units Next compute the weighted average contribution margin per unit. First identity the formula labols, then complete the calculations step by step Standard Sale price per unt Deduct Varable expense per unit Contribution margin per unit Sales mix in unts Contribution margin Weighted average contribution margin…
Radar Company sells bikes for $530 each. The company currently sells 4,000 bikes per year and could make as many as 4,380 bikes per year. The bikes cost $300 each to make: $185 in variable costs per bike and $115 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 380 bikes for $510 each. Incremental fixed costs to make this order are $100 per bike. No other costs will change if this order is accepted.
Smart Phones. Inc. buys one model of smartphone, paying $2370 per case of 20 phones. Find the asking price for each assuming a 40% markup on cost

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