Sales Mix and Break-Even Sales Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Products Unit Selling Price Unit Variable Cost Sales Mix Laptops $1,200 $600 40% Tablets 700 350 60% The estimated fixed costs for the current year are $2,250,000. Required: Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year. _____units Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. Laptops _______units Tablets _______units Assume that the sales mix was 60% laptops and 40% tablets. Compare the break-even point with that in part (1). Why is it so different? _____units
Sales Mix and Break-Even Sales
Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows:
|
Products |
Unit Selling Price |
Unit Variable Cost |
Sales Mix |
|||
|
Laptops |
$1,200 |
|
$600 |
|
40% |
|
|
Tablets |
700 |
|
350 |
|
60% |
|
The estimated fixed costs for the current year are $2,250,000.
Required:
Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year.
_____units
Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year.
|
Laptops |
_______units |
|
Tablets |
_______units |
Assume that the sales mix was 60% laptops and 40% tablets. Compare the break-even point with that in part (1). Why is it so different?
_____units
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