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 $230 420 The estimated fixed costs for the current year are $402,500. Laptops Tablets Unit Variable Cost $160 Why is it so different? The break-even point is heavily toward the product with the 200 units Sales Mix 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 30% 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: 70% 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. units in this scenario than in part (1) because the sales mix is weighted contribution margin per unit of product.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Laptops
$230
Tablets
420
The estimated fixed costs for the current year are $402,500.
Unit Variable Cost
$160
200
Why is it so different?
The break-even point is
heavily toward the product with the
Sales Mix
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
30%
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:
units
70%
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.
units
in this scenario than in part (1) because the sales mix is weighted
contribution margin per unit of product.
Transcribed Image Text: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 Laptops $230 Tablets 420 The estimated fixed costs for the current year are $402,500. Unit Variable Cost $160 200 Why is it so different? The break-even point is heavily toward the product with the Sales Mix 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 30% 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: units 70% 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. units in this scenario than in part (1) because the sales mix is weighted contribution margin per unit of product.
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