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 $1,600 $800 40% Laptops Tablets 850 350 60% 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Question 1
Unit Selling Price
Unit Variable Cost
Unit Contribution Margin
Break-even Sales (Units)
Question 2
units of laptops
units of tablets
Question 3
Unit Selling Price
Unit Variable Cost
Unit Contribution Margin
Break-even Sales (Units)
units of laptops
units of tablets
Transcribed Image Text:Question 1 Unit Selling Price Unit Variable Cost Unit Contribution Margin Break-even Sales (Units) Question 2 units of laptops units of tablets Question 3 Unit Selling Price Unit Variable Cost Unit Contribution Margin Break-even Sales (Units) units of laptops units of tablets
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
Unit Selling Price
Unit Variable Cost
Sales Mix
Laptops
$1,600
$800
40%
Tablets
850
350
60%
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?
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 Unit Selling Price Unit Variable Cost Sales Mix Laptops $1,600 $800 40% Tablets 850 350 60% 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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