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resource from Cengage Learning Chapter 20 Homework Sales Mix and Break-Even Sales CDOOK Print Item Data related to the expected sales of laptops and
resource from Cengage Learning Chapter 20 Homework Sales Mix and Break-Even Sales CDOOK Print Item 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: Unit Variable Cost Products Laptops Tablets Unit Selling Price $1,600 900 $800 450 Sales Mix 40% 60% The estimated fixed costs for the current year are $3,894,000. 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. 6,600 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 Tablets 2,640 units 3,960 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? 4,327 X units The break-even point is lower contribution margin per unit in this scenario than in part (1) because the sales mix is weighted more heavily of product. toward the product with the higher
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