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Urban Mobility manufactures and sells 8 different models of electric scooters. Urban Mobility is contemplating a...

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Accounting

Urban Mobility manufactures and sells 8 different models of electric scooters. Urban Mobility is contemplating a 4% price cut across all 8 models. It expects the price cut to result in a 10% increase in the number of units sold for models Q1701, Q1703, Q1705, and Q1707. The other four models (Q1702, Q1704, Q1706, and Q1708) are expected to see a 6% increase in sales volume. Assess the impact of the price cut on Urban Mobility’s profits and prepare a comprehensive break-even analysis.

Model

Sales Price

Variable Costs

Sales Volume

Q1701

$150

$75

1,200

Q1702

$160

$80

1,500

Q1703

$170

$85

1,800

Q1704

$180

$90

2,000

Q1705

$190

$95

2,200

Q1706

$200

$100

2,500

Q1707

$210

$105

2,700

Q1708

$220

$110

3,000

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