Question

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

Laptops Tablets

Unit Selling Price

$1,600 850

Unit Variable Cost

$800 350

Sales Mix

40% 60%

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

Instructions

1. 2. 3.

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

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

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? .

Answer 1