Scotty Quadcopters plans to sell a standard quadcopter (toy drone) for $54 and a deluxe quadcopter...

Transcribed Image Text:

Scotty Quadcopters plans to sell a standard quadcopter (toy drone) for $54 and a deluxe quadcopter for $74. Scotty purchases the standard quadcopter for $34 and the deluxe quadcopter for $54. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $14,000. How many of each type of quadcopter must Scotty sell monthly to breakeven? To earn $15,000? 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.) Operating income Fixed expenses Breakeven sales in ) Weighed-avg. CM per unit = units Next compute the weighted-average contribution margin per unit. First identify the formula labels, then complete the calculations step by step. 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 Standard Scotty Quadcopters plans to sell a standard quadcopter (toy drone) for $54 and a deluxe quadcopter for $74. Scotty purchases the standard quadcopter for $34 and the deluxe quadcopter for $54. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $14,000. How many of each type of quadcopter must Scotty sell monthly to breakeven? To earn $15,000? 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.) Operating income Fixed expenses Breakeven sales in ) Weighed-avg. CM per unit = units Next compute the weighted-average contribution margin per unit. First identify the formula labels, then complete the calculations step by step. 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 Standard