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:
Products | Unit Selling Price | Unit Variable Cost | Sales Mix | |||
Laptops | $210 | $140 | 40% | |||
Tablets | 460 | 220 | 60% |
The estimated fixed costs for the current year are $712,080.
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. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. fill in the blank 4 units
Why is it so different?
The break-even point is
higherlower
in this scenario than in part (1) because the sales mix is weighted
moreless
heavily toward the product with the
higherlower
contribution margin per unit of product.
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