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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 $220 $150 40%
Tablets 360 170 60%

The estimated fixed costs for the current year are $670,240.

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.

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:

3. Assume that the sales mix was 60% laptops and 40% 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 ______

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

heavily toward the product with the _____________

contribution margin per unit of product.

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