= Homework: Chapter 07 Graded Homework Question 5, E7-34A (similar to) Part 6 of 7 HW Score: 81.71%, 24.51 of 30 points Points: 5.88 of 7 o Racer Quadcopters plans to sell a standard quadcopter (toy drone) for $54 and a deluxe quadcopter for $64. Racer purchases the standard quadcopter for $34 and the deluxe quadcopter for $44. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $18,000. How many of each type of quadcopter must Racer sell monthly to breakeven? To earn $12,000? 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. Deluxe Total Standard S 54 64 (34) (44) Sale price per unit Deduct Variable expense per unit Contribution margin per unit Sales mix in units S 20 $ 20 3 2 5 100 Contribution margin 60 $ 40 20 Weighted average contribution margin per unit How many of each type of quadcopter must Racer sell monthly to breakeven? Racer must sell standard quadcopters and deluxe quadcopters to breakeven