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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
19-5A
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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 | $1,600 | Â | $800 | Â | 40% | Â |
| Tablets | 850 | Â | 350 | Â | 60% | Â |
The estimated fixed costs for the current year are $2,498,600.
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.
units
2. Based on the break-even sales in units in part (1), determine the unit sales of both laptops and tablets for the current year.
| Laptops | units |
| Tablets | units |
3. Assume that the sales mix was 50% laptops and 50% tablets. Compute the break-even point of the overall (total) product E.
units
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