Breakeven point for managerial accounting

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Reference no: EM13114502

Compute the breakeven point for two product lines. Scotty's Scooters plans to sell a standard scooter for $40 and a chrome scooter for $50. Scotty's purchases the standard scooter for $25 and the chrome scooter for $30.

Scotty expects to sell two standard scooters for every three chrome scooters. His monthly fixed costs are $18,900.

Requirements:

1. How many of each type of scooter must Scotty's Scooters sell each month to break even?

2. To earn $14,400?

Reference no: EM13114502

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