Stevie's Scooters plans to sell a standard scooter for $200 anda chrome scooter for $210. Stevie's purchases the standard scooterfor $50 and the chrome for $70. Stevie's expects to sell onestandard scooter for every three chrome scooters. Stevie's monthlyfixed costs are $85,500.
Requirement 1: Start by selecting the formulaand entering the amounts to compute the break even point in unitsfor the "package" of products- total scooters to be sold.
Formula: ______+_____/_____= required sales
How many of each type of scooter must Stevie's sell each monthto break even?
Stevie's must sell ____ standard scooters and _____ Chromescooters to break even.
Formula: ______+_____/_____= required sales
Requirement 2: How many of each type of scootermust Stevie's sel to earn $119,700?
Formula: ______+_____/_____= required sales
Stevie's must sell ____ standard scooters and _____ Chromescooters.
Requirement 3: Suppose Stevie's expectation tosell one standard scooter for every three chrome scooters wasincorrect and for every four scooters sold two were standard andtwo were chrome. Will the break even point of total scootersincrease or decrease?
Each standard scooter contributes $____ to profits while eachchrome scooter contributes$_____ to profit.Therefore, the increasein sales of standard scooters and decrease in chrome scooters woudcause the weighted average contribution margin to _______ and thebreak even point to _______.
