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 $1,600 $800 40% Tablets 850 350 60% The estimated fixed costs for the current year are $2,498,600. 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. fill in the blank 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 2 units Tablets fill in the blank 3 units 3. Assume that the sales mix was 50% laptops and 50% tablets. Compute the break-even point of the overall (total) product E. fill in the blank 4 units Why is it so different? The break-even point is in this scenario than in part (1) because the sales mix is weighted heavily toward the product with the 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 | $1,600 | $800 | 40% | |||
| Tablets | 850 | 350 | 60% |
The estimated fixed costs for the current year are $2,498,600.
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.
fill in the blank 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 2 units |
| Tablets | fill in the blank 3 units |
3. Assume that the sales mix was 50% laptops and 50% tablets. Compute the break-even point of the overall (total) product E.
fill in the blank 4 units
Why is it so different?
The break-even point is in this scenario than in part (1) because the sales mix is weighted heavily toward the product with the contribution margin per unit of product.
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