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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

Question

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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