Solution-How many scooters do need to sell each year

How many scooters do need to sell each year

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Reference no: EM132586058

Super Scooters Pty Ltd makes scooters. Fixed costs are $175,000 per year. Each scooter requires raw materials of $35, and takes two labour hours to make at a cost of $25 per labour hour by casual employees. Scooters are sold for $150 each. Super Scooters Pty Ltd anticipates selling 4,000 scooters per year.

Question 1: What is the break-even point in number of scooters? Show your workings.

Question 2: What is the breakeven point in dollars (sales revenue)? Give your answer to the nearest whole dollar (0 d.p.)

Question 3: What is the margin of safety for their planned sales level? Round your answer to nearest number of whole units.

Question 4: Super Scooters Pty Ltd decides it would like to earn $120,000 profit per year from selling the scooters. How many scooters do they need to sell each year to do so? Show your workings.

Question 5: Super Scooters Pty Ltd decides it would like to earn $120,000 profit per year from selling the scooters. How many scooters do they need to sell each year to do so? Show your workings.

Question 6: Name two qualitative factors Super Scooters Pty Ltd should take into consideration in deciding whether to accept or reject the order.

Reference no: EM132586058

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How many scooters do need to sell each year

Reference no: EM132586058

Reference no: EM132586058

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