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 $ 3,016,000. Required: 1. Determine the estimated units of sales of the overall company product, M, necessary to reach the break - even point for the current year. fill in the blank 1 of 1 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 fill in the blank 1 of 2 units Tablets fill in the blank 2 of 2 units 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? fill in the blank 1 of 4 units The break - even point is fill in the blank 2 of 4 lower in this scenario than in part (1) because the sales mix is fill in the blank 3 of 4 weighted more heavily toward the product with the higher fill in the blank 4 of 4 contribution margin per unit of product.
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 $ 3,016,000. Required: 1. Determine the estimated units of sales of the overall company product, M, necessary to reach the break - even point for the current year. fill in the blank 1 of 1 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 fill in the blank 1 of 2 units Tablets fill in the blank 2 of 2 units 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? fill in the blank 1 of 4 units The break - even point is fill in the blank 2 of 4 lower in this scenario than in part (1) because the sales mix is fill in the blank 3 of 4 weighted more heavily toward the product with the higher fill in the blank 4 of 4 contribution margin per unit of product.
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 Laptops $1,400 $700 40% Tablets 800 400 60% The estimated fixed costs for the current year are $
3,016,000. Required: 1. Determine the estimated units of sales of the overall company product, M, necessary to reach the break - even point for the current year. fill in the
blank 1 of 1 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 fill in the blank 1 of
2 units Tablets fill in the blank 2 of 2 units 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? fill in the blank 1 of 4 units The break - even point is fill in the blank 2 of 4 lower in this scenario than in part (1) because the sales mix is fill in the blank 3 of 4
weighted more heavily toward the product with the higher fill in the blank 4 of 4 contribution margin per unit of product.
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