XYZ, Inc. produces and sells two products: phones and tablets. XYZ plans to sell 48,000 phones and 12,000 tablets in the coming year. Product price and cost information includes: Price $1,200 for phones, $910 for tablets. Unit Variable Cost $225 for phones, $265 for tablets Direct Fixed Cost $272,100 for phones, $191,680 for tablets Common fixed selling and administrative expenses total $194,855. Part 1 What is the sales mix estimated for next year? Round your answer to two decimal places.  Part 2 Using the rounded sales mix from Part 1, determine how many phones and tablets should be sold to break-even.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
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XYZ, Inc. produces and sells two products: phones and tablets. XYZ plans to sell 48,000 phones and 12,000 tablets in the coming year. Product price and cost information includes:

Price $1,200 for phones, $910 for tablets.

Unit Variable Cost $225 for phones, $265 for tablets

Direct Fixed Cost $272,100 for phones, $191,680 for tablets

Common fixed selling and administrative expenses total $194,855.

Part 1 What is the sales mix estimated for next year? Round your answer to two decimal places. 

Part 2 Using the rounded sales mix from Part 1, determine how many phones and tablets should be sold to break-even. 

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