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 | $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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