US-Mobile manufactures and sells two products, tablet computers and smartphones,

Question

US-Mobile manufactures and sells two products, tablet computers and smartphones, in the ratio of 6:4. Fixed costs are $126,900, and the contribution margin per composite unit is $135. What number of each type of product is sold at the break-even point?

Determine the break-even point in composite units. Choose Numerator: / Choose Denominator: = Break even units / = Break even units Determine the number of units of each product that will be sold at the break-even point. Quantity Number of composite units to break even. Unit sales at break-even point Tablet computers Smartphones Total units

Explanation / Answer

Total fixed costs / Contribution margin per unit = Break even units 126900 / 135 = 940 composite units Quantity Number of composite units to break even. Unit sales at break-even point Tablet computers 6 940 5640 Tablet computers Smartphones 4 940 3760 Smartphones Total units 10 940 9400 Total units

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