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	$230		$160		20%
Tablets	440		210		80%

The estimated fixed costs for the current year are $201,960.

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 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. fill in the blank 4 units

Why is it so different?

The break-even point is higher in this scenario than in part (1) because the sales mix is weighted more heavily toward the product with the lower contribution margin per unit of product.