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