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Sales mix and break-even sales Data related to the expected sales of laptops and tablets...

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Accounting

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 $1,000 $500 40%
Tablets 600 300 60%

The estimated fixed costs for the current year are $1,596,000.

Required:

1. Determine the estimated units of sales of the overall company product, M, necessary to reach the break-even point for the current year. fill in the blank 1 of 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 1 of 2 units Tablets fill in the blank 2 of 2 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 1 of 4 units The break-even point is fill in the blank 2 of 4

higherlowerthe samelower
in this scenario than in part (1) because the sales mix is fill in the blank 3 of 4
not weightedweighted less heavilyweighted more heavilyweighted more heavily


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