Answer:
Rally must sell 1,080 units of Standard and 720 units of Deluxe
Explanation:
                                                   Standard       Deluxe        Total
Sales price per unit                      $45                $65
Less: Variable cost                      ($35)              ($45)
Contribution Margin per  unit       $10                $20
Sales Mix units  (A)                        $3                  $2                $5
Contribution margin                      $30                $40             $70
Weighted average Contribution                                              $14    
per unit C= B/A
Appointment of fixed cost between standard and deluxe
Total Fixed cost = 14,700
Break even point = Fixed cost / Weighted average Contribution  per unit
= 14,700 / 14
= 1,050
Apportionment of Break even point sales between Standard and deluxe in sales mix ratio (3:2)
Standard = 1,050 * 3/5 = 630
Deluxe = 1,050 * 2/3 = 420
Unit to be sold to get desired profit = Fixed cost + Desired profit / Weighted average Contribution per unit
= (14,700 + 10,500) / 14
= 1,800
Apportionment of Units to be sold to get desired profit between Standard and Deluxe in sales mix ratio (3:2)
Standard = 1,800 * 3/5 = 1,080
Deluxe = 1,800 * 2/5 = 720
To reach target operating income, Rally must sell 1,080 units of Standard and 720 units of Deluxe