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Problem - 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?
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