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 900 450 60% The estimated fixed costs for the current year are $11,682,000. 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. 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 60% laptops and 40% tablets. Compare the break-even point with that in part (1). Why is it so different? fill in the blank 4 units The break-even point is in this scenario than in part (1) because the sales mix is toward the product with the higher 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 900 450 60% The estimated fixed costs for the current year are $11,682,000. 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. 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 60% laptops and 40% tablets. Compare the break-even point with that in part (1). Why is it so different? fill in the blank 4 units The break-even point is in this scenario than in part (1) because the sales mix is toward the product with the higher of product.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 | $1,600 | $800 | 40% | |||
| Tablets | 900 | 450 | 60% |
The estimated fixed costs for the current year are $11,682,000.
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.
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 60% laptops and 40% tablets. Compare the break-even point with that in part (1). Why is it so different?
fill in the blank 4 units
The break-even point is in this scenario than in part (1) because the sales mix is toward the product with the higher of product.
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