Mix and Break-Even Sales elated to the expected sales of laptops and tablets for Tech Products In ucts Unit Selling Price Unit Variable Cost Sales Mix $200 $140 20% 410 190 80% estimated fixed costs for the current year are $172,960. ops ets uired: etermine the estimated units of sales of the overall (total) product, E, ne
Mix and Break-Even Sales elated to the expected sales of laptops and tablets for Tech Products In ucts Unit Selling Price Unit Variable Cost Sales Mix $200 $140 20% 410 190 80% estimated fixed costs for the current year are $172,960. ops ets uired: etermine the estimated units of sales of the overall (total) product, E, ne
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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:
Products Unit Selling Price
Unit Variable Cost
Sales Mix
$200
$140
190
410
The estimated fixed costs for the current year are $172,960.
Laptops
Tablets
20%
80%
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.
892 X units
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:
178 X units
Tablets:
714 X units
3. Assume that the sales mix was 80% laptops and 20% tablets. Determine the estimated units of sales of the overall product necessary to reach the break-even point for
the current year.
1,880 units
Why is it so different?
The break-even point is higher X in this scenario than in part (1) because the sales mix is weighted more
lower ✓contribution margin per unit of product.
✔heavily toward the product with the
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