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Speedys Scooters plans to sell a standard scooter for $250 and a chrome scooter for $300. Speedys purchases the standard sc

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Part 1) First of all, we need to calculate weighted average CM per unit :-
CM of standard scooter = ( 250 - 125 ) =$ 125
CM of chrome scooter = ( 300 - 150 )= $ 150
Ratio between standard scooter and chrome scooter = 1:3
weighted average CM per unit :- 125 *1 /4 + 150 * 3/4 = 31.25 + 112.50 = $ 143.75
Break even units = (Fixed costs +Target profit)/ weighted average CM per unit = 158,125+0 / 143.75 = 1100 units
Speedy Scooters must sell ( 1100 * 1/4 =) 275 standard scooters each month to break even.
Speedy Scooters must sell ( 1100* 3/4 =) 825 chrome scooters each month to break even.
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