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 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. 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.

Answer 1

Answer:

Instructios are listed below.

Explanation:

Giving the following information:

Laptops:

Selling price= $1,600

Cost per unit= $800

Sale mix= 40%

Tablets:

Selling price= $850

Cost per unit= $350

Sale mix= 60%

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

A) Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)

Weighted average selling price= (1600*0.40) + (850*0.60)= $1,150

Weighted average variable expense= (800*0.40) + (350*0.60)= 530

Break-even point (units)= 2,498,600 / (1150 - 530)= 4,030 units

B) Laptops= 4030*0.40= 1,612 units

Tablets= 4030*0.60= 2,418 units