Racer Quadcopters plans to sell a standard quadcopter (tay drone) for $45 and a deluxe quadcopter for $65. Racer 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 $9,800 How many of each type of quadcopter must Racersell monthly to breakeven? To earn $10,500?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 CMcontribution margin)Breakeven sales in units

Breakeven is the point at which an entity is in a situation of no profit and no loss. At this point,…

Answered: Racer Quadcopters plans to sell a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Am. 312.
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Rapido Quadcopters plans to sella standard quadoopter (toy drone) for $54 and a delue quadcopter for $74. Rapido purchases the standard quadcopter for $44 and the deluse quadcopter for $54. Management expects to sel wo dekove quadcopters for every three standard quadcopters The company's monthly foxed expenses are $11,200. How many of each type of quadcopter must Rapido sell monthly to breakeven? To eam $7,7007 First identity the formula to compute the sales in units at various levels of operating income using the contribubon margin approach (Abbreviations used Avg. average, and CM e contribution margin) Fied expenses Operating income Weighed-avg CM per unit Breakeven sales in units Next compute the weighted average contribution margin per unit. First identity the formula labols, then complete the calculations step by step Standard Sale price per unt Deduct Varable expense per unit Contribution margin per unit Sales mix in unts Contribution margin Weighted average contribution margin…

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