Racer Quadcopters plans to sell a standard quadcopter (tay drone) for $45 and a deluxe quadcopter for $65. Racer 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 $9,800 How many of each type of quadcopter must Racersell monthly to breakeven? To earn $10,500?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 CMcontribution margin)Breakeven sales in units

Breakeven is the point at which an entity is in a situation of no profit and no loss. At this point,…

Answered: Racer Quadcopters plans to sell a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Racer Quadcopters plans to sell a standard quadcopter (toy drone) for $54 and a deluxe quadcopter for $64. Racer purchases the standard quadcopter for $34 and the deluxe quadcopter for $44. 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 Racer sell monthly to breakeven? To ean $12,000? 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.) Fixed expenses Operating income 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 Deluxe Total Sale price per unit 54 $ 64 Deduct: Variable expense per unit Contribution margin per unit (34) (44) 20 $ 20 Sales mix in units 3…
Rally Quadcopters plans to sell a standard quadcopter (toy drone) for $45 and a deluxe quadcopter for $55. Rally purchases the standard quadcopter for $25 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 $23,100. How many of each type of quadcopter must Rally sell monthly to breakeven? To earn $15,400? 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.) ( Operating income 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 Deluxe Total Sale price per unit Deduct Variable expense per unit 45 35 55 30 Contribution margin per unit Sales mix in units Contribution…
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 $21,600. How many of each type of quadcopter must Rapido sell monthly to breakeven? To earn $12,600?
Rapido Quadcopters plans to sella standard quadoopter (toy drone) for $54 and a delue quadcopter for $74. Rapido purchases the standard quadcopter for $44 and the deluse quadcopter for $54. Management expects to sel wo dekove quadcopters for every three standard quadcopters The company's monthly foxed expenses are $11,200. How many of each type of quadcopter must Rapido sell monthly to breakeven? To eam $7,7007 First identity the formula to compute the sales in units at various levels of operating income using the contribubon margin approach (Abbreviations used Avg. average, and CM e contribution margin) Fied expenses Operating income Weighed-avg CM per unit Breakeven sales in units Next compute the weighted average contribution margin per unit. First identity the formula labols, then complete the calculations step by step Standard Sale price per unt Deduct Varable expense per unit Contribution margin per unit Sales mix in unts Contribution margin Weighted average contribution margin…
Stevie's Scooters plans to sell a standard scooter for $850 and a chrome scooter for $1350. Stevie's purchases the standard scooter for $450 and the chrome scooter for $600. Stevie's expects to sell one standard scooter for every three chrome scooters. Stevie's monthly fixed costs are $715,500. Requirement 1. How many of each type of scooter must Stevie's Scooters sell each month to break even? Start by selecting the formula and entering the amounts to compute the breakeven point in units for the "package" of products—total scooters to be sold. (Enter a "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) ? ? ? ? ( Fixed costs + Target profit ) ÷ Weighted-avg. CM per unit = Required sales in units ( + ) ÷ = Requirements Dialog…
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
Steve's scooters plans to sell a standard scooter for $160 and a chrome scooter for $200.00. Steve's purchases the standard scooter for $40 and the chrome scooter for $50. Steve expects to sell one standard scooter for every three chrome scooters. Steve's monthly fixed costs are $102, 600. How many of each type of scooter must Steve's scooters sell each month to break even?
Skippy's Scooters plans to sell a standard scooter for $250 and a chrome scooter for $300. Skippy's purchases the standard scooter for $125 and the chrome scooter for $150. Smartie expects to sell one standard scooter for every three chrome scooters. Skippy's monthly fixed costs are $158,125. Requirements 1. How many of each type of scooter must Skippy's Scooters sell each month to break even? 2. How many of each type of scooter must Skippy's Scooters sell each month to earn $218,500? Requirement 1. How many of each type of scooter must Skippy's Scooters sell each month to break even? Start by selecting the formula and entering the amounts to compute the breakeven point in units for the "package" of products-total scooters to be sold. (Enter a "0" for any zero balances. Enter currency amounts to the nearest cent. Abbreviation used: Weighted-avg. CM = weighted-average contribution margin.) Required sales in units + + )/
Sammy's Scooters plans to sell a standard scooter for $90 and a chrome scooter for $120. Sammy's purchases the standard for $45 and the chrome scooter for $30. Sammy's expects to sell one standard scooter for every three chrome scooters. Sammy's monthly fixed costs are $69300 1. How many of each type of scooter must Sammy sell each month to break even? 2. How many of each type of scooter must Sammy sell each month to earn $126000
Sunland, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $25 and are sold for $35. Glass pitchers cost $24 and are sold for $45. All other costs are fixed at $572,000 per year. Current sales plans call for 14,000 plastic pitchers and 28,000 glass pitchers to be sold in the coming year.
Best Trim, a manufacturer of lawn mowers, predicts that it will purchase 204,000 spark plugs next year. Best Trim estimates that 17,000 spark plugs will be required each month. A supplier quotes a price of $9 per spark plug. The supplier also offers a special discount option: If all 204,000 spark plugs are purchased at the start of the year, a discount of 2% off the $9 price will be given. Best Trim can invest its cash at 10% per year. It costs Best Trim $260 to place each purchase order. Q. What is the opportunity cost of interest forgone from purchasing all 204,000 units at the start of the year instead of in 12 monthly purchases of 17,000 units per order?
Global Lawn, a manufacturer of lawn mowers, predicts that it will purchase 228,000 spark plugs next year. Global Lawn estimates that 19,000 spark plugs will be required each month. A supplier quotes a price of $11.00 per spark plug. The supplier also offers a special discount option: If all 228,000 spark plugs are purchased at the start of the year, a discount of 4% off the $11.00 price will be given. Global Lawn can invest its cash at 10% per year. It costs Global Lawn $260 to place each purchase order. Read the requirements. Requireme Let's begin t Differer Requirements 1. What is the opportunity cost of interest forgone from purchasing all 228,000 units at the start of the year instead of in 12 monthly purchases of 19,000 units per order? C---- 2. Would this opportunity cost be recorded in the accounting system? Why? 3. Should Global Lawn purchase 228,000 units at the start of the year or 19,000 units each month? Show your calculations. 4. What other factors should Global Lawn…

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