Answer:
For break-even, number of standard quadcopter sold should be 238
and, number of standard quadcopter sold should be 2 × 238 = 476
to earn $7,700, number of standard quadcopter sold should be 392
and, number of standard quadcopter sold should be 2 × 392 = 784
Explanation:
Given:
Selling cost of standard quadcopter = $55
Selling cost of deluxe quadcopter = $85
Purchasing cost of standard quadcopter = $45
Purchasing cost of deluxe quadcopter = $65
monthly fixed expenses = $ 11,900
Now,
let the number standard quadcopter sold be 'x'
thus, according to the question
the number deluxe quadcopter sold will be = 2x
also,
at break-even
total cost = total revenue
or
Total fixed cost + Total purchasing cost = Total revenue
or
$11,900 + ($45x + $65 × 2x) = $55x + $85 × 2x
or
$11,900 + $45x + $130x = $55x + $170x
or
$11,900 + $175x = $225x
or
$225x - $175x = $11,900
or
$50x = $11,900
or
x = 238
Hence,
For break-even, number of standard quadcopter sold should be 238
and, number of standard quadcopter sold should be 2 × 238 = 476
To earn $7,700
Earning = Total Revenue - Total cost
$7,700 = ( $55x + $85 × 2x ) - [$11,900 + ($45x + $65 × 2x)]
$7,700 = $225x - $11,900 - $175x
or
$7,700 + $11,900 = $50x
or
$50x = $19,600
or
x = 392
Therefore,
to earn $7,700, number of standard quadcopter sold should be 392
and, number of standard quadcopter sold should be 2 × 392 = 784
