A Problem 21-5A B C Question 1 Unit Selling Price Unit Variable Cost Unit Contribution Margin Break-even Sales (Units) Question 2 1,612 2,418 Question 3 Unit Selling Price Unit Variable Cost Unit Contribution Margin Break-even Sales (Units) 1,922 1,922 D $620 4,030 units of laptops units of tablets $650 3,844 units of laptops units of tablets E
A Problem 21-5A B C Question 1 Unit Selling Price Unit Variable Cost Unit Contribution Margin Break-even Sales (Units) Question 2 1,612 2,418 Question 3 Unit Selling Price Unit Variable Cost Unit Contribution Margin Break-even Sales (Units) 1,922 1,922 D $620 4,030 units of laptops units of tablets $650 3,844 units of laptops units of tablets E
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please read the intructions for 21-5A, and answer the missing boxes on the page 2.
thanks for your time!
Transcribed Image Text:PR 21-5A Sales mix and break-even sales
OBJ. 5
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
Laptops
Unit Selling Price
$1,600
850
Tablets
The estimated fixed costs for the current year are $2,498,600.
Unit Variable Cost
$800
350
Sales Mix
40%
60%
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.
3.
2. Based on the break-even sales (units) in part (1), determine the unit sales of both
laptops and tablets for the current year.
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?
Transcribed Image Text:A
Problem 21-5A
B
C
Question 1
Unit Selling Price
Unit Variable Cost
Unit Contribution Margin
Break-even Sales (Units)
Question 2
1,612
2,418
Question 3
Unit Selling Price
Unit Variable Cost
Unit Contribution Margin
Break-even Sales (Units)
1,922
1,922
D
$620
4,030
units of laptops
units of tablets
$650
3,844
units of laptops
units of tablets
E
Expert Solution
Step 1
BREAKEVEN POINT
Break Even means the volume of production or sales where there is no profit or loss.
In other words, Break Even Point is the volume of production or sales where total costs are equal to revenue.
Breakeven Point in Units
= Fixed Cost ÷ Contribution Margin Per Unit
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education