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 Tablets The estimated fixed costs for the current year are $2,498,600. Unit Selling Price $1,600 850 Unit Variable Cost $800 350 3. 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. 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?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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: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?
Problem 21-5A
Question 1
Unit Selling Price
Unit Variable Cost
Unit Contribution Margin
Break-even Sales (Units)
Question 2
Question 3
Unit Selling Price
Unit Variable Cost
Unit Contribution Margin
Break-even Sales (Units)
|||||
units of laptops
units of tablets
10
units of laptops
units of tablets
Transcribed Image Text:Problem 21-5A Question 1 Unit Selling Price Unit Variable Cost Unit Contribution Margin Break-even Sales (Units) Question 2 Question 3 Unit Selling Price Unit Variable Cost Unit Contribution Margin Break-even Sales (Units) ||||| units of laptops units of tablets 10 units of laptops units of tablets
Expert Solution
Step 1 Introduction

The break even sales are the sales where business earns no profit no loss during the period. The break even sales are calculated as fixed cost divided by contribution margin. 

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