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:

The estimated fixed costs for the current year are $$7,788,000.$

Required:

Determine the estimated units of sales of the overall $($total$)$ product, $E,$ necessary to reach the break$-$even point for the current year.

units

Based on the break$-$even sales $($units$)$ in part $(1),$ determine the unit sales of both laptops and tablets for the current year.

Laptops

units

Tablets

units

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?

units

The break$-$even point is lower $$ in this scenario than in part $(1)$ because the sales mix is weighted more heavily $$ toward the product

with the higher contribution margin per unit $$ of product.