CeriterWinsyes ACCT 202 - Routh, Summer 2018 (online) Mitchell Mundy& 6/25/18 5:

Question

CeriterWinsyes ACCT 202 - Routh, Summer 2018 (online) Mitchell Mundy& 6/25/18 5:48 PM Test: Exam (Module 3-ch . 6, 7) Time Limit: 02:00:00 Submit Test This Question: 5 pts 8 of 12 (12 complete) This Test: 43 pts possible deluxe quadcopter for Sáu, Management expects to sell two deluxe quadco $20,000. How many of each type of quadcopter must Racer sell monthly to breakeven? To earn $13,000? Racer Quadcopters pla sell a standard quadcopter toy drone) for $50 and a deluxe quadcopter for $60. Racer purchases the standard quadcopter for $30 and pters for every three standard quadcopters. The company's monthly fixed expenses are average, ana CM-contripunon margin.) expenses+ Operating incomeW / Weighed-avg. CM per unitBreakeven sales in units Next compute the weighted-average contribution margin per unit. First identify the formula labels, then complete the calcu Standard Deluxe Total Deduct Weighted average contribution margin per unit Choose from any list or enter any number in the input fields and then continue to the next question

Explanation / Answer

Standard Deluxe Total Selling price per unit 50 60 Less: Variable cost 30 40 Contribution margin per unit 20 20 Sales mix weights 0.6 0.4 1 Weighted average contribution per unit 12 8 20 Total fixed expense: 20000 Break even point in units: Total fixed cost / Weighted average contribution per unit 20000 /20 = 1000 units Number of Standard producct: 1000*0.60 = 600 units Number of Deluxe product: 1000 *0.40 = 400 units Total fixed cost 20000 Desired profits 13000 Desired contribution 33000 Target sales in units: Desired contribution/ Weighted Average contribution per unit 33000 /20 = 1650 units Number of Standard Product: 990 units Number of Deluxe product: 660 units

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