PR 6-5A Sales mix and break-even sales Obj. 5
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:
Unit Variable Cost
Sales Mix
Products
Laptops
Tablets
Unit Selling Price
$1,600
850
$800
350
40%
60%
The estimated fixed costs for the current year are $2,498,600.
Instructions
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.
3.
Assume that the sales mix was 50% laptops and 50% tablets. Compare the breakeven
point with that in part (1). Why is it so different?

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