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 $210 $140 400 Laptops Tablets The estimated fixed costs for the current year are $752,640. Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year. units units 190 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. Laptops: Tablets: 3. Assume that the sales mix was 70% laptops and 30% tablets. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. Why is it so different? The break-even point is units units 30% 70% in this scenario than in part (1) because the sales mix is weighted contribution margin per unit of product. heavily toward the product with the
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 $210 $140 400 Laptops Tablets The estimated fixed costs for the current year are $752,640. Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year. units units 190 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. Laptops: Tablets: 3. Assume that the sales mix was 70% laptops and 30% tablets. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. Why is it so different? The break-even point is units units 30% 70% in this scenario than in part (1) because the sales mix is weighted contribution margin per unit of product. heavily toward the product with the
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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