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	$220		$150		20%
Tablets	410		190		80%

The estimated fixed costs for the current year are $760,000.

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. _____________ 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:	____________units
Tablets:	____________units

3. Assume that the sales mix was 80% laptops and 20% tablets. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. _____________units

Why is it so different?

The break-even point is

higher or lower ?

in this scenario than in part (1) because the sales mix is weighted

more or less ?

heavily toward the product with the

higher or lower ?

contribution margin per unit of product.