Quadcopters plans to sell a standard (toy drone) for and a deluxe for . purchases the standard for and the deluxe for . Management expects to sell two deluxe for every three standard . The company's monthly fixed expenses are . How many of each type of must sell monthly to breakeven? To earn ? 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.) ( Operating income + Fixed expenses ) / 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 45 35 10 3 30 Deluxe 55 30 25 2 50 Total 5 80 16 How many of each type of must sell monthly to breakeven? Rally must sell 866.25 standard quadcopters and 577.50 deluxe quadcopters to breakeven. How many of each type of must sell monthly to earn ? To reach the target operating income, Rally must sell 1443.75 standard quadcopters and 962.5 deluxe quadc

Rally Quadcopters plans to sell a standard quadcopter (toy drone) for $45 and a deluxe quadcopter for $55. Rally purchases the standard quadcopter for $25 and the deluxe quadcopter for $30. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $23,100. How many of each type of quadcopter must Rally sell monthly to breakeven? To earn $15,400? 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.) Operating income + Fixed expenses )/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. Standard Deluxe Total 45 55 Sale price per unit Deduct: Variable expense per unit 35 30 Contribution margin per unit 10 25 Sales mix in units 3 5 80 Contribution margin 30 50 16 Weighted average contribution margin per unit How many of each type of quadcopter must Rally sell monthly to breakeven? Rally must sell 866.25 standard quadcopters and 577.50 deluxe quadcopters to breakeven. How many of each type of quadcopter must Rally sell monthly to earn $15,400? To reach the target operating income, Rally must sell 1443.75 standard quadcopters and 962.5 deluxe quadcopters