Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sales mix and break - even salesData related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which

Sales mix and break-even salesData 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%Tablets85035060%The estimated fixed costs for the current year are $2,498,600.Required:1.Determine the estimated units of sales of the overall company product, M, necessary to reach the break-even point for the current year.fill in the blank 1 of 1units2.Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year. Laptopsfill in the blank 1 of 2unitsTabletsfill in the blank 2 of 2units3.Assume that the sales mix was 50% laptops and 50% tablets. Compare the break-even point with that in part (1). Why is it so different?fill in the blank 1 of 4units The break-even point isfill in the blank 2 of 4higherlowerthe samein this scenario than in part (1) because the sales mix isfill in the blank 3 of 4not weightedweighted less heavilyweighted more heavilytoward the product with the higherfill in the blank 4 of 4contribution margin per unitsalesvariable costsof product.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions