Use the following information for the next 6 questions. the Elroy and the Rosie.

Question

Use the following information for the next 6 questions. the Elroy and the Rosie. The projections are on a per scooter basis). oters. The company has three models of scooters, the Astro rolle has prepared the following estimates for next year. (All prepared the Astro Elroy Rosie Selling Price Variable costs $120 60 $150 90 $300 120 Estimated sales are: Astro, $48,000.000, Elroy $60.000,000, and Rosie, $12.000,000. Estimated fixed costs are $ 17,600,000. 42) The estimated weighted average contribution margin is 46.0% $36.00 C. $26.00 D. 54.0% E. none of these 43) The sales needed to make $5,000,000 are: A $18,518,518.52 C) $ 49,130,434.78 E. S 30,000,000.00 $ 32,608,695.65 None of the above 44) The number of units of Astro sold at break-even are approximately: 127,536 163,768 C. 60,620 D. 66,667 E. none of these 45) What will happen to total profit if Jetson drops Rosie? C. D. E. Profits will decrease by $4,800,000 Profits will decrease by $7,200,000 The Fixed costs will decrease by $1,000,000 The Fixed Costs will increase by $1,000,000 none of these

Explanation / Answer

42.

43.

44. Answer is B 163,768

45. Aswer is B.

If Rosie is dropped the profits will decrease by $7,200,000 which is the contribution from the product as shown below.

Total Astro Elroy Rosie Estimated sales value 120000000 48000000 60000000 12000000 Unit selling price 120 150 300 No of units sold 400000 400000 40000 Unit variable cost 60 90 120 Sales value 120000000 48000000 60000000 12000000 Variable cost 64800000 24000000 36000000 4800000 Contribution margin 55200000 24000000 24000000 7200000 Contribution margin (%) 46% 50% 40% 60% Weighted average contribution margin : 46% (The contribution on the total sales of the company)

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.