Sales Mix and Break-Even SalesNorthwest 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% gameplayers and 30% computer tablets. The unit selling price and the unit variable cost for each product are as follows:ProductsUnit Selling PriceUnit Variable CostGame playersTablets$70180$50110a. Compute the break-even sales (units) for the overall product, E.unitsb. How many units of each product, game players and tablets, would be sold at the break-even point?Digital game playersComputer tabletsunitsunits

Variable costs are costs that varies with the change in the level of output whereas fixed costs are…

Answered: Sales Mix and Break-Even Sales…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $800 40% Tablets 900 450 60% The estimated fixed costs for the current year are $11,682,000. 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.fill in the blank 1 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. Laptops fill in the blank 2 units Tablets fill in the blank 3 units 3. Assume that the sales mix was 60% laptops and 40% tablets. Compare the break-even point with that in part (1). Why is it so different?fill in the blank 4 units The break-even point is in this scenario than in part (1) because the sales mix is…
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