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Speedy's Scooters plans to sell a standard scooter for $55 and a chrome scooter for $70. Speedy's purchases the standard scooter for $30 and the chrome scooter for $40. Speedy's expects to sell one standard scooter for every three chrome scooters. Speedy's monthly fixed costs are $23,000.
Problem 1: What is the Weighted avg CM per unit?
Problem 2: How many of each type of scooter must Speedy's Scooters sell each month to break? even?
Problem 3: How many of each type of scooter must Speedy's Scooters sell each month to earn $25,300??
Problem 4: Suppose Speedy'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.)
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