Business, 02.08.2021 22:30 likevlad2014
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 Sale mix
Laptop $1,600 $800 40%
Tablets 850 350 60%
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.
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 breakeven point with that in part (1). Why is it so different?
Answers: 1
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Sales mix and break-even sales
Data related to the expected sales of laptops and tablets for Tech P...
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