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Mix and Break-Even sales the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years,
Mix and Break-Even sales the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is typical of recent years, are as follows: Data related Unit Selling Price Unit Variable Cost Products Sales Mix 40% Laptops $200 $140 Tablets 430 200 60% The estimated fixed costs for the current vear are $829.440 Required: 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach ebreak-even point for the current vear units 2. Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current vear. units Laptops: Tablets: 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 vear. units Why is it so different? contribution margin per unit of product. The break-even point is higher in this scenario than in part (1) because the sales mix is weighted more heavily toward the product with the lower Feedback Check My Werk , Subtract the combined unit variable cost from the combined unit selling price to determine the combined unit contribution margin. Divide the foxed costs I the combined t 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 (2) except with new sales mix assumption. How does the sales mix affect the break-even point? Consider the effect of the contribution margin for each product when answering
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