Racer Quadcopters plans to sell a standard quadcopter (toy drone) for $50 and a deluxe quadcopter for $60. Racer purchases the standard quadcopter for $30 and the deluxe quadcopter for $35. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $17,600. How many of each type of quadcopter must Racer sell monthly to breakeven? To earn $14,300? 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. Standard Deluxe Total $ Sale price per unit Deduct Variable expense per unit 50 $ (30) 20 $ 60 (35) 25 $ Contribution margin per unit Sales mix in units Contribution margin $ 60 $ 50 6 || Weighted average contribution margin per unit || How many of each type of quadcopter must Racer sell monthly to breakeven? Racer must sell 3 standard quadcopters and 2 deluxe quadcopters to breakeven