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 $290 Laptops Tablets 520 units Unit Variable Cost $200 The estimated fixed costs for the current year are $309,760. Why is it so different? The break-even point is 240 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 units Sales Mix 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: Tablets: 20% 80% 3. Assume that the sales mix was 80% laptops and 20% tablets. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. units heavily toward the product with the in this scenario than in part (1) because the sales mix is weighted contribution margin per unit of product.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5PA
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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
$290
Laptops
Tablets
520
units
Unit Variable Cost
$200
The estimated fixed costs for the current year are $309,760.
Why is it so different?
The break-even point is
240
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
units
Sales Mix
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:
Tablets:
20%
80%
3. Assume that the sales mix was 80% laptops and 20% tablets. Determine the estimated units of sales of the overall product
necessary to reach the break-even point for the current year.
units
heavily toward the product with the
in this scenario than in part (1) because the sales mix is weighted
contribution margin per unit of product.
Transcribed Image Text: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 $290 Laptops Tablets 520 units Unit Variable Cost $200 The estimated fixed costs for the current year are $309,760. Why is it so different? The break-even point is 240 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 units Sales Mix 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: Tablets: 20% 80% 3. Assume that the sales mix was 80% laptops and 20% tablets. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. units heavily toward the product with the in this scenario than in part (1) because the sales mix is weighted contribution margin per unit of product.
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