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Speedy Quadcopters plans to sell a standard quadcopter (toy drone) for $65 and a deluxe quadcopter for $85. Speedy purchases the standard quadcopter for $45
Speedy Quadcopters plans to sell a standard quadcopter (toy drone) for $65 and a deluxe quadcopter for $85. Speedy purchases the standard quadcopter for $45 and the deluxe quadcopter for $60. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $16,500. How many of each type of quadcopter must Speedy sell monthly to breakeven? To earn $13,200? CE 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.) Breakeven sales in units Contribution margin ratio Fixed expenses Operating income Units sold Variable expenses Weighed-avg. CM per unit
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