Green Rider makes three types of electric scooters. The companys total fixed cost is $ 1,080,000,000. Selling
Question:
a. What is Green Riders break- even point in units and sales dollars?
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?
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)?
d. If Green Rider sold more X-treme scooters and fewer Mod scooters, how would your answers to (a) and (b) change? No calculations areneeded.
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Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111971724
9th edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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