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 $1,600 $800 350 Laptops Tablets 850 Required: The estimated fixed costs for the current year are $2,498,600. Sales Mix units 40% 1. Determine the estimated units of sales of the overall company product, M, necessary to reach the break- point for the current year. units units 60% 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets fo current year. Laptops Tablets
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 $1,600 $800 350 Laptops Tablets 850 Required: The estimated fixed costs for the current year are $2,498,600. Sales Mix units 40% 1. Determine the estimated units of sales of the overall company product, M, necessary to reach the break- point for the current year. units units 60% 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets fo current year. Laptops Tablets
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
$1,600
$800
350
850
The estimated fixed costs for the current year are $2,498,600.
Laptops
Tablets
Required:
units
units
Sales Mix
1. Determine the estimated units of sales of the overall company product, M, necessary to reach the break-even
point for the current year.
units
40%
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
The break-even point is
60%
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?
units
toward the product with the higher
in this scenario than in part (1) because the sales mix is
of product.
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