Sales mix and break-even salesData related to the expected sales of laptops and tablets for TechProducts Inc. for the current year, which is typical of recent years, are asfollows: Products Unit Selling Price Unit Variable Cost Sales Mix LaptopsTablets $1,600850 $800350 40%50% The estimated fixed costs for the current year are $2,498,600. Instructions1. Determine the estimated units of sales of the overall (total)product, E, necessary to reach the break-even point for the currentyear. 2. Based on the break-even sales (units) in part (1), determine theunit 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?
Sales mix and break-even salesData related to the expected sales of laptops and tablets for TechProducts Inc. for the current year, which is typical of recent years, are asfollows: Products Unit Selling Price Unit Variable Cost Sales Mix LaptopsTablets $1,600850 $800350 40%50% The estimated fixed costs for the current year are $2,498,600. Instructions1. Determine the estimated units of sales of the overall (total)product, E, necessary to reach the break-even point for the currentyear. 2. Based on the break-even sales (units) in part (1), determine theunit 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?
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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Question
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 Tablets |
$1,600 850 |
$800 350 |
40% 50% |
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 break-even point with that in part (1). Why is it so different?
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