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In: Accounting

Rapido Quadcopters plans to sell a standard quadcopter ​(toy drone) for $45 and a deluxe quadcopter...

Rapido Quadcopters plans to sell a standard quadcopter ​(toy drone) for $45 and a deluxe quadcopter for $75. Rapido 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 19,800. How many of each type of quadcopter must Rapido sell monthly to​ breakeven? To earn $9,000​?

First identify the formula to compute the sales in units at various levels of operating income using the contribution margin approach.

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