Question

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

Answer 1

10 stand scooters and 15 chrome scooters

Step-by-step explanation:

Data:

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