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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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  1. 13 May, 04:53
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    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
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