Question

Sales Mix and Break-Even Sales Data ralated to the expected sales of laptops and tablets for Tech Products Inc. for the current Products Unit Selling Price Unit Variable Cost Sales Mix Laptops Tablets 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 ouint for the current year year, which is typical of recent years, are as follows: $1,600 $800 40% 850 350 60% 4,030 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. units Tablets units 3 Assume that the sales mix was 50% laptops and 50% tablets. Co p te the break-even pint or the overall (total) product E units Check My Wor 1 Subract the combined unit variable cost from the combined unit seling price to determine the combined unt contribution margin Divice the fixed costs by the combineg unt contribution margin to arrive at total break-even units Check My Work

Answer 1

1	Product	Unit selling price	Unit Variable cost	Unit contribution margin	Sales Mix	Unit contribution margin for Product E
		(a)	(b)	(c) = (a) - (b)	(d)	(c) X (d)
	Laptops	1,600	$                            800	$        800	40%	$                                           320
	Tablets	850	$                            350	$        500	60%	$                                           300
	Total					$                                           620
1	Break - even point	=	Fixed cost / Unit contribution margin for Product E
		=	$2498600 / $620
		=	4,030	units
2	Laptops	=	4030 units X 40%	=	1,612	units
	Tablets	=	4030 units X 60%	=	2,418	units
3	Product	Unit selling price	Unit Variable cost	Unit contribution margin	Sales Mix	Unit contribution margin for Product E
		(a)	(b)	(c) = (a) - (b)	(d)	(c) X (d)
	Laptops	1,600	$                            800	$        800	50%	$                                           400
	Tablets	850	$                            350	$        500	50%	$                                           250
	Total					$                                           650
3	Break - even point	=	Fixed cost / Unit contribution margin for Product E
		=	$2498600 / $650
		=	3,844	units