Zippy Quadcopters plans to sell a standard quadcopter (toy drone) for $40 and a deluxe quadcopter for $60. Zippy purchases the standard quadcopter for $20 and the deluxe quadcopter for $30. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $25,200. How many of each type of quadcopter must Zippy sell monthly to breakeven? To earn $15,600? 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
Zippy Quadcopters plans to sell a standard quadcopter (toy drone) for $40 and a deluxe quadcopter for $60. Zippy purchases the standard quadcopter for $20 and the deluxe quadcopter for $30. Management expects to sell two deluxe quadcopters for every three standard quadcopters. The company's monthly fixed expenses are $25,200. How many of each type of quadcopter must Zippy sell monthly to breakeven? To earn $15,600? 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
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2CE
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