If the company has an after-tax income goal of 1 billion

Assignment Help Accounting Basics

Reference no: EM13586794

Green Rider makes three types of electric scooters. The company's total fixed cost is $1,080,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow:

Selling Price Variable Cost

Percent of
Total Unit Sales
Mod $2,200 $1,900 30
Rad 3,700 3,000 50
X-treme 6,000 5,000 20

a. What is Green Rider's 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 are needed.

Reference no: EM13586794

Questions Cloud

Arthur wesson an unmarried individual who is age 68 has : arthur wesson an unmarried individual who is age 68 has taxable income of 160000. he has amt positive adjustments of

You have recently been hired by a small gift shop carters : you have recently been hired by a small gift shop carters unique gifts in your local tourist town. this shop has been

Based on the information presented in the e-activity : financial analyst skills please respond to the followingbased on the information presented in the e-activity recommend

You have accumulated 12000 and are looking for the best : you have accumulated 12000 and are looking for the best rate of return that can be earned over the next year. a bank

If the company has an after-tax income goal of 1 billion : green rider makes three types of electric scooters. the companys total fixed cost is 1080000000. selling prices

What is a guaranteed payment how is it reported on form : what is a guaranteed payment? how is it reported on form 1065 and its various schedules? how is it reported to and by

Consider a small raindrop and a large raindrop falling : consider a small raindrop and a large raindrop falling through the atmosphere. compare their terminal speeds. what are

Construct a cost-volume-profit chart on your own paper what : soldner health care products inc. expects to maintain the same inventories at the end of 2014 as at the beginning of

Austin automotive sells an auto accessory for 180 per unit : austin automotive sells an auto accessory for 180 per unit. the companys variable cost per unit is 30 for direct

User Account

All Pages