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
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 | $1,400 | $700 | 40% | |||
Tablets | 800 | 400 | 60% |
The estimated fixed costs for the current year are $12,064,000.
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 | units |
Tablets | units |
3. Assume that the sales mix was 60% laptops and 40% tablets. Compare the breakeven point with that in part (1). Why is it so different? units
The break-even point is in this scenario than in part (1) because the sales mix is toward the product with the higher of product.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started