Sales Mix and Break-Even Sales The estimated fixed costs for the current year ar

Question

Sales Mix and Break-Even Sales

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 point for the current year.
units

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

3. Assume that the sales mix was 50% laptops and 50% tablet PCs. Compute the break-even point of the overall (total) product E.
units

Explanation / Answer

.4x*1600+.6x*850=.4x*800+.6x*350+2,498,600

.4x*800+.6x*500=320x+300x=620x=2498600'

x=4030

1.) 4030

2.) Laptops=1612

PCs=2418

3.).5x*1600+.5x*850=.5x*800+.5x*350+2,498,600

.5x*800+.5x*500=400x+250x=650x=2498600'

x=3844

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