question archive Super Scooters Pty Ltd makes scooters
Subject:ManagementPrice: Bought3
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.
1-What is the break-even point in number of scooters? Show your workings.
2-What is the breakeven point in dollars (sales revenue)? Give your answer to the nearest whole dollar (0 d.p.)
3-What is the margin of safety for their planned sales level? Round your answer to nearest number of whole units.
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.
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.
6-Name two qualitative factors Super Scooters Pty Ltd should take into consideration in deciding whether to accept or reject the order.