FTH Corporation Produces and Sells Two Products: Regular Scooters and Electric

question 113

Essay

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

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Definitions:

Asynchronous Communication

A method of communication in which data can be transmitted intermittently rather than in a steady stream, allowing the sender and receiver to not be synchronized.

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