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Category > Accounting Posted 19 Aug 2017 My Price 9.00

Tech Products Inc

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

850

350

60%

The estimated fixed costs for the current year are $2,498,600.

Instructions

1.     Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year.

2.     Based on the break-even sales (units) in part (1), determine the unit sales of both laptops and tablets for the current year.

3.     Assume that the sales mix was 50% laptops and 50% tablets. Compare the break-even point with that in part (1). Why is it so different?

Answers

Maurice Tutor
(5)
Status NEW Posted 19 Aug 2017 11:08 PM My Price 9.00

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