102251 .-I '4? E} G) v2.cengagenow.com [I] Chapter 20 Sales Mix and BreakEven 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: Pmducts Unit Selling Price Unit Variable Dust Sales Mix Laptops $1. ,200 $600 40% Tablets 700 350 60% The estimated fixed costs for the current year are $6,750,000. 0 Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the breakeven point for the current year. '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 5,000 , \\I uniis Tablets moon: J 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? 6,000 x U nits The break-even point is lower v in this scenario than in part (1) because the sales ITIX is weighted more heavily V toward the product With the higher contribution margin per unit \\/ of product. Fatah-nit mum... 1. Subtract the combined unit variable cost from the combined unit selling price to determine the combined unit contribution margin. Divide the fixed costs by the combined unit contribution margin to arrive at total break-even units. 2. Multiply the sales mix percentages for each product to determine the respective break-even units for laptops and tablets. 3. Calculate using the same process as in requirement (1) except with a 60/40 sales mix. How does the sales mix affect the break-even point? Consider the effect of the contribution margin for each product when answering. < + e