Scotty Quadcopters plans to sell a standard quadcopter (toy drone) for $65 and a deluxe quadcopter for $85. Scotty purchases the standard quadcopter for $45 and the deluxe quadcopter for $65. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $18,000. 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 units at various levels f operating income using the contribution margin approach. (Abbreviations used: Avg. = average, and CM = contribution margin.) Fixed expenses ( ) = 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. Standard + Operating income 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
Scotty Quadcopters plans to sell a standard quadcopter (toy drone) for $65 and a deluxe quadcopter for $85. Scotty purchases the standard quadcopter for $45 and the deluxe quadcopter for $65. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $18,000. 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 units at various levels f operating income using the contribution margin approach. (Abbreviations used: Avg. = average, and CM = contribution margin.) Fixed expenses ( ) = 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. Standard + Operating income 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
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....
Related questions
Question
Scotty
Quadcopters plans to sell a standard
screenshot attached
thnaks
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Essentials Of Business Analytics
Statistics
ISBN:
9781285187273
Author:
Camm, Jeff.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning