FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
$1,600
Tablets
850
The estimated fixed costs for the current year are $2,498,600.
Laptops
Tablets
$800
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.
units
units
The break-even point is i
the higher i
350
40%
60%
of product.
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?
units
in this scenario than in part (1) because the sales mix is
toward the product with
expand button
Transcribed Image Text: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 $1,600 Tablets 850 The estimated fixed costs for the current year are $2,498,600. Laptops Tablets $800 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. units units The break-even point is i the higher i 350 40% 60% of product. 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? units in this scenario than in part (1) because the sales mix is toward the product with
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