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

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Computers & Technology

Chubbs

22 March, 20:43

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

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Answers (1)

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Eliezer Oconnor · Answer 1

10 stand scooters and 15 chrome scooters

Explanation:

dа ta:

The margin approach:

(Fixed expenses + Operating income) / Weighted average CM per unit = Break even sales in units.

Tallying from the tables, the types and quantities that need to be sold will be like this:

Standard scooters = 10

Chrome scooters = 15