US-Mobile manufactures and sells two products, tablet computers (70% of sales) and smartphones (30% of sales). Fixed costs are $990,000, and the weighted-average contribution margin per unit is $110. How many units of each product are sold at the break-even point? Determine the break-even point in units. Numerator: 1 Total fixed costs $ Denominator: Weighted-average contribution margin per unit = 990,000/ $ Determine the number of units of each product that will be sold at the break-even point. Tablet computers 1,286 Smartphones 30,000 110.00 = Break Even Units Break even units 9,000 units
US-Mobile manufactures and sells two products, tablet computers (70% of sales) and smartphones (30% of sales). Fixed costs are $990,000, and the weighted-average contribution margin per unit is $110. How many units of each product are sold at the break-even point? Determine the break-even point in units. Numerator: 1 Total fixed costs $ Denominator: Weighted-average contribution margin per unit = 990,000/ $ Determine the number of units of each product that will be sold at the break-even point. Tablet computers 1,286 Smartphones 30,000 110.00 = Break Even Units Break even units 9,000 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:US-Mobile manufactures and sells two products, tablet computers (70% of sales) and smartphones (30% of sales). Fixed costs are
$990,000, and the weighted-average contribution margin per unit is $110. How many units of each product are sold at the break-even
point?
Determine the break-even point in units.
Numerator:
1
Denominator:
/ Weighted-average contribution margin per unit
Total fixed costs
$
|||||
110.00
wwwwwww.
990,000 / $
Determine the number of units of each product that will be sold at the break-even point.
Tablet computers
1,286
Smartphones
30,000
mane
Break Even Units
Break even units
9,000 units
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