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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: The estimated fixed costs for the current year are $2,498,600. Instructions 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year. 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. 3. Assume that the sales mix was 50% laptops and 50% tablets. Compare the break-even point with that in part (1). Why is it so different?

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Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 21, Problem 21.5APR
Textbook Problem

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:

Chapter 21, Problem 21.5APR, Sales mix and break-even sales Data related to the expected sales of laptops and tablets for Tech

The estimated fixed costs for the current year are $2,498,600.

Instructions

1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year.

2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year.

3. Assume that the sales mix was 50% laptops and 50% tablets. Compare the break-even point with that in part (1). Why is it so different?

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Chapter 21 Solutions

Accounting
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