Managerial Accounting
14th Edition
ISBN: 9781337270595
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 5, Problem 5PA
1.
To determine
Calculate the break-even point in sales units for the overall Product E for the current year.
2.
To determine
Calculate the break-even sales (units) for Product-Laptops and Product-Tablets.
3.
To determine
Compare the break-even point with that in Part (1).
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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
$280
$190
20%
Tablets
560
260
80%
The estimated fixed costs for the current year are $1,362,240.
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 80% laptops and 20% tablets. Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year.fill in the blank 4 units
Why is it so different?
The…
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
$1,200
$600
40%
Tablets
700
350
60%
The estimated fixed costs for the current year are $2,250,000.
Required:
Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year._____units
Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year.
Laptops
_______units
Tablets
_______units
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?_____units
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…
Chapter 5 Solutions
Managerial Accounting
Ch. 5 - Describe how total variable costs and unit...Ch. 5 - Which of the following costs would be classified...Ch. 5 - Describe how total fixed costs and unit fixed...Ch. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 8DQCh. 5 - Prob. 9DQCh. 5 - What does operating leverage measure, and how is...
Ch. 5 - Prob. 1BECh. 5 - Prob. 2BECh. 5 - Prob. 3BECh. 5 - Prob. 4BECh. 5 - Prob. 5BECh. 5 - Prob. 6BECh. 5 - Prob. 7BECh. 5 - Classify Costs Following is a list of various...Ch. 5 - Identify cost graphs The following cost graphs...Ch. 5 - Identify activity bases For a major university,...Ch. 5 - Prob. 4ECh. 5 - Identify fixed and variable costs Intuit Inc....Ch. 5 - Prob. 6ECh. 5 - High-low method Ziegler Inc. has decided to use...Ch. 5 - Prob. 8ECh. 5 - Contribution margin ratio Young Company budgets...Ch. 5 - Prob. 10ECh. 5 - Prob. 11ECh. 5 - Prob. 12ECh. 5 - Prob. 13ECh. 5 - Prob. 14ECh. 5 - Prob. 15ECh. 5 - Prob. 16ECh. 5 - Prob. 17ECh. 5 - Prob. 18ECh. 5 - Prob. 19ECh. 5 - Prob. 20ECh. 5 - Prob. 21ECh. 5 - Prob. 22ECh. 5 - Prob. 23ECh. 5 - Prob. 24ECh. 5 - Prob. 25ECh. 5 - Classify costs Seymour Clothing Co. manufactures a...Ch. 5 - Prob. 2PACh. 5 - Prob. 3PACh. 5 - Prob. 4PACh. 5 - Prob. 5PACh. 5 - Contribution margin, break-even sales,...Ch. 5 - Classify costs Cromwell Furniture Company...Ch. 5 - Prob. 2PBCh. 5 - Prob. 3PBCh. 5 - Prob. 4PBCh. 5 - Prob. 5PBCh. 5 - Contribution margin, break-even sales,...Ch. 5 - Prob. 1ADMCh. 5 - Prob. 2ADMCh. 5 - Prob. 3ADMCh. 5 - Prob. 1TIFCh. 5 - Prob. 3TIF
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