FTH Corporation produces and sells two products: regular scooters and electric scooters. Last month, the company produced and sold 500 regular and 300 electric scooters. Last month's per-unit financial data for both models is presented below:
Regular Electric
Selling price $100 $150
Variable cost 30 40
Product line fixed cost 25 45
Corporate fixed cost 10 10
Product line fixed costs can be avoided if the product is dropped, but corporate fixed costs can only be avoided if FTH goes out of business entirely. Calculate the following amounts:
a)Total fixed product line costs for each product
b)Total corporate fixed costs
c)Overall corporate breakeven point in sales dollars assuming a constant sales mix
d)Breakeven point in sales dollars for regular scooters, ignoring corporate fixed costs
e)Breakeven point in sales dollars for electric scooters, ignoring corporate fixed costs
Correct Answer:
Verified
b)$10 ...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q144: CVP analysis is most likely to be
Q150: SDZ Corporation produces and sells a single
Q151: Julie's Jewels sells cubic zirconium (fake diamond)rings
Q152: NTQ Corporation produces and sells a single
Q153: CTR Corporation produces and sells three products:
Q156: RSE Corporation sells its product for $10
Q157: To calculate a breakeven point for an
Q158: Franco's Flowers is a wholesale flower shop
Q159: CVP analysis has a number of uses.
Q160: During Muin Company's first year of operations
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents