Question
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
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:
ProductsUnit Selling PriceUnit Variable CostSales MixLaptops$1,600$80040%Tablets90045060%
The estimatedfixed costsfor the current year are $15,576,000.
Required:
1.Determine the estimated units of sales of the overall (total) product, E, necessary to reach thebreak-even pointfor the current year.
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.
LaptopsunitsTabletsunits
3.Assume that the sales mix was 60% laptops and 40% tablets. Compare the breakeven point with that in part (1). Why is it so different?
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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