Question
Sales Mix and Break-Even Sales Data related to the expected sales of laptops and tablets for Tech Products Inc. for the current year, which is
Sales Mix and Break-Even Sales 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 | $1,600 | $800 | 40% | |||
Tablets | 850 | 350 | 60% | |||
The estimated fixed costs for the current year are $2,498,600.
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 50% laptops and 50% tablets. Compute the break-even point of the overall (total) product E.
fill in the blank 4 units
Why is it so different? The break-even point is ___higer / lower________in this scenario than in part (1) because the sales mix is weighted ___more/less_______heavily toward the product with the ______higer/lower_______ contribution margin per unit of product.
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