Scotty Quadcopters plans to sell a standard quadcopter for $50 and a deluxe quadcopter for $70. Scotty purchases the standard quadcopter for $30 and the deluxe quadcopter for $40. Management expects to sell two deluxe wuadcopters for every three standard quadcopters. The companys monthly fixed expenses are 22,800 How many of each type of quadcopter must Scotty sell monthly to breakeven. Why?

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. Deduct: Weighted average contribution margin per unit