Problem 19 - 5A

Sales mix and break-even sales Obj. 5Data 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 Unit Variable Sales Price Cost Mix Laptops $1,600 $800 40% Tablets 850 350 60% 1 The estimated fixed costs for the current year are $2,498,600. Instructions 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year. Answer Check Figure: 4,030 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. 3. Assume that the sales mix was 50% laptops and 50% tablets. Compare the break-even point with that in part (1). Why is it so different