Answer:
Laptops= 2,221 units
Tablets= 3,331 units
Explanation:
Giving the following information:
Products Unit Selling Price Unit Variable Cost Sales Mix
Laptops $1,200 $600 40%
Tablets 700 350 60%
<u>To calculate the break-even point for each product, first, we need to calculate the break-even point for the whole company.</u>
Break-even point (units)= Total fixed costs / (weighted average selling price - weighted average variable expense)
weighted average selling price= (selling price* weighted sales participation)
weighted average selling price= (0.4*1,200) + (0.6*700)= $900
weighted average variable cost= (variable cost* weighted sales participation)
weighted average variable cost= (0.4*600) + (0.6*350)= $450
Break-even point (units)= 2,498,600/ (900 - 450)= 5,552 units
Now, based on the participation of the sales, we can calculate the break-even point for each product.
Laptops= 0.4*5,552= 2,221
Tablets= 0.6*5,552= 3,331
