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Sales Mix and Break-Even Sales New Wave Technology Inc. manufactures and sells two products, MP3 players and satellite radios. The fixed costs are $475,000, and
Sales Mix and Break-Even Sales
New Wave Technology Inc. manufactures and sells two products, MP3 players and satellite radios. The fixed costs are $475,000, and the sales mix is 30% MP3 players and 70% satellite radios. The unit selling price and the unit variable cost for each product are as follows:
| Products | Unit Selling Price | Unit Variable Cost | ||
| MP3 players | $50 | $40 | ||
| Satellite radios | 130 | 80 | ||
a. Compute the break-even sales (units) for both products combined. units
b. How many units of each product, MP3 players and satellite radios, would be sold at the break-even point?
| MP3 players | units |
| Satellite radios | units |
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