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	$1,600		$800		40%
Tablets	850		350		60%

The estimated fixed costs for the current year are $2,498,600.

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	_________
Tablets	_________

3. Assume that the sales mix was 50% laptops and 50% tablets. Compute the break-even point of the overall (total) product E. ___?___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.