7. Scotty Quadcopters plans to sell a standard quadcopter (toy drone) for $65 and a deluxe...

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7. Scotty Quadcopters plans to sell a standard quadcopter (toy drone) for $65 and a deluxe quadcopter for $95. Scotty purchases the standard quadcopter for $45 and the deluxe quadcopter for $70. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $19,800. How many of each type of quadcopter must Scotty sell monthly to breakeven? To earn $11,000? 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.) (1) (2) (3) = 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. (4) Deduct: (5) (6) Standard Deluxe (7) |(8) Weighted average contribution margin per unit How many of each type of quadcopter must Scotty sell monthly to breakeven? Scotty must sell standard quadcopters and Total deluxe quadcopters to breakeven. How many of each type of quadcopter must Scotty sell monthly to earn $11,000? To reach the target operating income, Scotty must sell standard quadcopters and deluxe quadcopters. (1) O OOOO OOOO (4) Units sold (2) Contribution margin ratio Variable expenses Fixed expenses O Operating income Weighed-avg. CM per unit OOOO Units sold O Contribution margin ratio Variable expenses Fixed expenses Weighed-avg. CM per unit Operating income Contribution margin Contribution margin per unit Sales mix in units Variable expense per unit 0000 (7) Sale price per unit OOOO Contribution margin Contribution margin per unit Sale price per unit Sales mix in units Variable expense per unit Contribution margin ratio Fixed expenses O Operating income Contribution margin Units sold Variable expenses O Weighed-avg. CM per unit O Contribution margin per unit Sale price per unit Sales mix in units O Variable expense per unit Contribution margin Contribution margin per unit Sale price per unit Sales mix in units (8) O Variable expense per unit OOOO O Contribution margin Contribution margin per unit Sale price per unit Sales mix in units O Variable expense per unit 7. Scotty Quadcopters plans to sell a standard quadcopter (toy drone) for $65 and a deluxe quadcopter for $95. Scotty purchases the standard quadcopter for $45 and the deluxe quadcopter for $70. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $19,800. How many of each type of quadcopter must Scotty sell monthly to breakeven? To earn $11,000? 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.) (1) (2) (3) = 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. (4) Deduct: (5) (6) Standard Deluxe (7) |(8) Weighted average contribution margin per unit How many of each type of quadcopter must Scotty sell monthly to breakeven? Scotty must sell standard quadcopters and Total deluxe quadcopters to breakeven. How many of each type of quadcopter must Scotty sell monthly to earn $11,000? To reach the target operating income, Scotty must sell standard quadcopters and deluxe quadcopters. (1) O OOOO OOOO (4) Units sold (2) Contribution margin ratio Variable expenses Fixed expenses O Operating income Weighed-avg. CM per unit OOOO Units sold O Contribution margin ratio Variable expenses Fixed expenses Weighed-avg. CM per unit Operating income Contribution margin Contribution margin per unit Sales mix in units Variable expense per unit 0000 (7) Sale price per unit OOOO Contribution margin Contribution margin per unit Sale price per unit Sales mix in units Variable expense per unit Contribution margin ratio Fixed expenses O Operating income Contribution margin Units sold Variable expenses O Weighed-avg. CM per unit O Contribution margin per unit Sale price per unit Sales mix in units O Variable expense per unit Contribution margin Contribution margin per unit Sale price per unit Sales mix in units (8) O Variable expense per unit OOOO O Contribution margin Contribution margin per unit Sale price per unit Sales mix in units O Variable expense per unit

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To calculate the breakeven point and the number of quadcopters Scotty Quadcopters must sell monthly ... View the full answer