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Rally Quadcopters plans to sell a standard quadcopter (toy drone) for $45 and a deluxe quadcopter for $65. Rally purchases the standard quadcopter for $35
Rally Quadcopters plans to sell a standard quadcopter (toy drone) for $45 and a deluxe quadcopter for $65. Rally purchases the standard quadcopter for $35 and the deluxe quadcopter for $45. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $14,700. How many of each type of quadcopter must Rally sell monthly to breakeven? To earn $10,500? 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 $ 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 How many of each type of quadcopter must Rally sell monthly to breakeven? Rally must sell How many of each type of quadcopter must Rally sell monthly to earn $10,500? To reach the target operating income, Rally must sell 65 (45) 20 2 40 (35) 10 $ 3 70 30 $ 630 standard quadcopters and 420 deluxe quadcopters to breakeven standard quadcopters and deluxe quadcopters
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