FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Sales Mix and Break-Even Sales
Northwest Technology Inc. manufactures and sells two products, digital game players and computer tablets. The fixed costs are $546,000, and the sales mix is 70% game
players and 30% computer tablets. The unit selling price and the unit variable cost for each product are as follows:
Products
Unit Selling Price
Unit Variable Cost
Game players
Tablets
$70
180
$50
110
a. Compute the break-even sales (units) for the overall product, E.
units
b. How many units of each product, game players and tablets, would be sold at the break-even point?
Digital game players
Computer tablets
units
units
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Transcribed Image Text:Sales Mix and Break-Even Sales Northwest Technology Inc. manufactures and sells two products, digital game players and computer tablets. The fixed costs are $546,000, and the sales mix is 70% game players and 30% computer tablets. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Game players Tablets $70 180 $50 110 a. Compute the break-even sales (units) for the overall product, E. units b. How many units of each product, game players and tablets, would be sold at the break-even point? Digital game players Computer tablets units units
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