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First identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach. (Abbreviations used: Avg. average,
First identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach. (Abbreviations used: Avg. average, and CM contribution margin.) Fixed expenses Operating income - Weighed avg. CM per unit Breakeven sales in units Next compute the weighted-average contribution margin per unit. First identify the formula labels, then complete the calculations step by step Sale price per unit Deduct: Variable expense per unit Contribution margin per unit Sales mix in units Contribution margin Weighted average contribution margin per unit Standard Deluxe Total 40 $ 50 (20) (30) 20 5 201 5 100 60 $ 40 20 How many of each type of quadcopter must Racer sell monthly to breakeven? Racer must sel 720 standard quadcopters and 480 deluxe quadcopters to breakeven How many of each type of quadcopter must Racer sell monthly to eam $10,000? To reach the target operating income. Racer must sel standard quadcopters and deluxe quadcopters How many of each type of quadcopter must Racer sell monthly to breakeven? Racer must sell 720 standard quadcopters and 480 deluxe quadcopters to breakeven. How many of each type of quadcopter must Racer sell monthly to earn $10,000? To reach the target operating income, Racer must sell standard quadcopters and deluxe quadcopters
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