Data related to the expected sales of two types of flat panel TVs for Yan Electronics Inc.

Question:

Data related to the expected sales of two types of flat panel TVs for Yan Electronics Inc. for the current year, which is typical of recent years, are as follows:

The estimated fixed costs for the current year are $861,840.

Instructions

1. Determine the estimated units of sales of the overall product 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 the 18? flat panel TV and 22? flat panel TV for the current year.

3. Assume that the sales mix was 25% 18? flat panel TV and 75% 22? flat panel TV. Compare the break-even point with that in part (1). Why is it so different?

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1 2 3 The breakeven point increased because the sales mix is weighted toward th...View the full answer

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Related Book For book-img-for-question

Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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Question Posted: Sep 05, 2011 08:55 AM

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Data related to the expected sales of two types of flat panel TVs for Yan Electronics Inc.

Question:

Products 18" Flat panel 22" Flat panel Unit Variable Cost Unit Selling Price Sales Mix $420.00 $300.00 75% 25%

Step by Step Answer:

1 2 3 The breakeven point increased because the sales mix is weighted toward th...View the full answer

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