Kenneth manages an electronics store where customers can purchase phones, tablets, or accessories for their technology needs. He is trying to plan for future profitability and came upon a break-even number (80 units in monthly sales) that his predecessor, Annie, had calculated. Unfortunately, Kenneth found no other supporting calculations or details to determine how many of those units were phones, tablets, and accessories.

Realizing that he needs as much cost, volume, and revenue information as possible, Kenneth dug up the following information for the store.

	Phones	Tablets	Accessories
Selling price	$860	$470	$100
Variable cost/unit	$430	$282	$20

Other monthly fixed store costs:

Salaries $7,660

Rent $4,000

Depreciation $2,600

Maintenance $1,300

Insurance $800

Utilities $600

He also determined that 25% of sales volume generally is from tablets. Additionally, customers usually purchase 1.5 times as many accessories as they do phones.

(a) Based on the above information, what is the sales mix for the three products?

Phones 30%

Tablets 25%

Accessories 45%

(b) At the break-even point, how many of the 80 units must have been phones?

Phones units

Answer rating: 100% (QA)

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