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Multiproduct Green Rider makes three types of electric scooters. The company's total fixed cost is $1,728,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Selling Price Variable Cost Percent of Total Unit Sales Mod Rad X-treme $2,200 3,700 6,000 $1,900 3,000 5,000 30 50 20 a. What is Green Rider's break-even point in units and sales dollars? Mod Rad X-treme Total Units 810,000 1,350,000 ✓ 540,000 ✓ 2,700,000 $ Dollars $ 1,782,000,0✓ 4,995,000,00✓ 3,240,000,00✓ 10,017,000, b. If the company has an after-tax income goal of $1.6 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? Mod Rad Units 2,685,000 x $ Dollars 0 % 0% 0x X-treme Total 0% 0% $ 0 % 0% 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)? Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your calculations. Units Dollars Mod 0 * $ 0x Rad 0% $ 0% X-treme 0% $ 0 % Total 0% $ 0 %

Multiproduct Green Rider makes three types of electric scooters. The company's total fixed cost is $1,728,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Selling Price Variable Cost Percent of Total Unit Sales Mod Rad X-treme $2,200 3,700 6,000 $1,900 3,000 5,000 30 50 20 a. What is Green Rider's break-even point in units and sales dollars? Mod Rad X-treme Total Units 810,000 1,350,000 ✓ 540,000 ✓ 2,700,000 $ Dollars $ 1,782,000,0✓ 4,995,000,00✓ 3,240,000,00✓ 10,017,000, b. If the company has an after-tax income goal of $1.6 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? Mod Rad Units 2,685,000 x $ Dollars 0 % 0% 0x X-treme Total 0% 0% $ 0 % 0% 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)? Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your calculations. Units Dollars Mod 0 * $ 0x Rad 0% $ 0% X-treme 0% $ 0 % Total 0% $ 0 %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Multiproduct Green Rider makes three types of electric scooters. The company's total fixed cost is $1,728,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Selling Price Variable Cost Percent of Total Unit Sales Mod Rad X-treme $2,200 3,700 6,000 $1,900 3,000 5,000 30 50 20 a. What is Green Rider's break-even point in units and sales dollars? Mod Rad X-treme Total Units 810,000 1,350,000 ✓ 540,000 ✓ 2,700,000 $ Dollars $ 1,782,000,0✓ 4,995,000,00✓ 3,240,000,00✓ 10,017,000, b. If the company has an after-tax income goal of $1.6 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? Mod Rad Units 2,685,000 x $ Dollars 0 % 0% 0x X-treme Total 0% 0% $ 0 % 0% 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)? Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your calculations. Units Dollars Mod 0 * $ 0x Rad 0% $ 0% X-treme 0% $ 0 % Total 0% $ 0 %
Transcribed Image Text:Multiproduct Green Rider makes three types of electric scooters. The company's total fixed cost is $1,728,000,000. Selling prices, variable cost, and sales percentages for each type of scooter follow: Selling Price Variable Cost Percent of Total Unit Sales Mod Rad X-treme $2,200 3,700 6,000 $1,900 3,000 5,000 30 50 20 a. What is Green Rider's break-even point in units and sales dollars? Mod Rad X-treme Total Units 810,000 1,350,000 ✓ 540,000 ✓ 2,700,000 $ Dollars $ 1,782,000,0✓ 4,995,000,00✓ 3,240,000,00✓ 10,017,000, b. If the company has an after-tax income goal of $1.6 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? Mod Rad Units 2,685,000 x $ Dollars 0 % 0% 0x X-treme Total 0% 0% $ 0 % 0% 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)? Note: Do not round until you determine the number of units of each product; round number of units to the next highest whole unit in your calculations. Units Dollars Mod 0 * $ 0x Rad 0% $ 0% X-treme 0% $ 0 % Total 0% $ 0 %
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