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 Laptops Tablets Unit Selling Price Unit Variable Cost Sales Mix $1,400 $700 40% 800 400 60% The estimated fixed costs for the current year are $6,032,000. 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. 580 X 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 9,280 X units 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? 13,920 X units The break-even point is lower weighted more heavily contribution margin per unit in this scenario than in part (1) because the sales mix is toward the product with the higher of product. Feedback Check My Worki 1. Subtract the combined unit variable cost from the combined unit selling price to determine the combined unit contribution margin. Divide the fixed costs by the combined unit 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 (1) except with a 60/40 sales mix. How does the sales mix affect the break-even point? Consider the effect of the contribution margin for each product when answering.