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 Laptops $1,400 $700 40% Tablets 800 400 60% The estimated fixed costs for the current year are $12,064,000. 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 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. units Laptops units Tablets 3. Assume that the sales mix was 60% laptops and 40% tablets. Compare the break-even point with that in part (1). Why is it so different? units toward the v in this scenario than in part (1) because the sales mix is weighted more heavily The break-even point is lower V of product. product with the higher contribution margin per unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
Laptops
$1,400
$700
40%
Tablets
800
400
60%
The estimated fixed costs for the current year are $12,064,000.
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
2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year.
units
Laptops
units
Tablets
3. Assume that the sales mix was 60% laptops and 40% tablets. Compare the break-even point with that in part (1). Why is it so different?
units
toward the
V in this scenario than in part (1) because the sales mix is weighted more heavily
The break-even point is lower
MV of product.
product with the higher contribution margin per unit
Feedback
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 Laptops $1,400 $700 40% Tablets 800 400 60% The estimated fixed costs for the current year are $12,064,000. 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 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. units Laptops units Tablets 3. Assume that the sales mix was 60% laptops and 40% tablets. Compare the break-even point with that in part (1). Why is it so different? units toward the V in this scenario than in part (1) because the sales mix is weighted more heavily The break-even point is lower MV of product. product with the higher contribution margin per unit Feedback
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