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:

Ultimate Authority

The highest or most supreme source of power and decision-making, often used in the context of governance, religion, or organizational leadership.

Married-Couple Families

Family units consisting of a married couple and their children, if any, living together as a single household.

Paid Labor Force

Individuals who are employed and receive compensation for their work, as opposed to volunteers or unpaid interns.

Traditional Nuclear Families

Family units consisting of two parents (a male and a female) and their biological or adopted children, living together and functioning as a single household.