Sales Mix and Break-Even Sales Data related to the expected sales of laptops and tablets for Tech...

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Accounting

Sales Mix and Break-Even Sales
Data related to the expected sales of laptops and tablets forTech Products Inc. for the current year, which is typical of recentyears, 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$3,894,000.
Required:
1. Determine the estimated units of sales ofthe overall (total) product, E, necessary to reach the break-evenpoint for the current year.
units
2. Based on the break-even sales (units) inpart (1), determine the unit sales of both laptops and tablets forthe current year.
Laptops units
Tablets units
3. Assume that the sales mix was 60% laptopsand 40% tablets. Compare the breakeven point with that in part (1).Why is it so different?
units
The break-even point is in this scenario thanin part (1) because the sales mix is toward theproduct with the higher of product.

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3.9 Ratings (532 Votes)

1 Sales 1600 40 900 60 1180 Less Variable cost 800 40 450 60 590 Unit contribution margin 1180 530 590 Breakeven sales Fixed Costs Unit Contribution Margin Total See Answer

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Products	Unit Selling Price	Unit Variable Cost	Sales Mix
Laptops	$1,600	$800	40%
Tablets	900	450	60%