Question: Please explain how to do requirement 3 Scott's Scooters plans to sell a standard scooter for $550 and a chrome scooter for $750. Scott's purchases

Please explain how to do requirement 3
Scott's Scooters plans to sell a standard scooter for $550 and a chrome scooter for $750. Scott's purchases the standard scooter for $225 and the chrome scooter for $300. Scott's expects to sell one standard scooter for every three chrome scooters. Scott's monthly fixed costs are $301,500. Read the requirements. Requirement 1. How many of each type of scooter must Scott'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.) How many of each type of scooter must Scott's Scooters sell each month to break even? Scott's must sell standard scooters and chrome scooters to break even. Requirement 2. How many of each type of scooter must Scott's Scooters sell each month to earn $753,750 ? Start by selecting the formula and entering the amounts to compute the targeted sales dollars required to earn for $753,750 for the "package" of scooters to be sold. (Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) To reach the target operating income, Scott's must sell standard scooters and chrome scooters. Requirement 3. Suppose Scott's expectation to sell one standard scooter for every three chrome scooters was incorrect and for every four scooters sold two are standard scooters and two are chrome scooters. Will the breakeven point of total scooters increase or decrease? Why? (Calculation not required.) Each standard scooter contributes to profits while each chrome scooter contributes to profits
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
