qs 18-21 (algo) sales mix and break - even lo p3\nus - mobile manufactures and sells two products, tablet…

qs 18-21 (algo) sales mix and break - even lo p3\nus - mobile manufactures and sells two products, tablet computers (65% of sales) and smartphones (35% of sales). fixed costs are $1,260,000, and the weighted - average contribution margin per unit is $140. how many units of each product are sold at the break - even point?\ndetermine the break - even point in units.\nnumerator: / denominator: = break even units\ndetermine the number of units of each product that will be sold at the break - even point.\ntablet computers\nsmartphones

qs 18-21 (algo) sales mix and break - even lo p3\nus - mobile manufactures and sells two products, tablet computers (65% of sales) and smartphones (35% of sales). fixed costs are $1,260,000, and the weighted - average contribution margin per unit is $140. how many units of each product are sold at the break - even point?\ndetermine the break - even point in units.\nnumerator: / denominator: = break even units\ndetermine the number of units of each product that will be sold at the break - even point.\ntablet computers\nsmartphones

Answer

Explanation:

Step1: Calculate break - even units

The formula for break - even units is $\text{Break - even units}=\frac{\text{Fixed costs}}{\text{Weighted - average contribution margin per unit}}$. Given fixed costs of $$1,260,000$ and weighted - average contribution margin per unit of $$140$. $\text{Break - even units}=\frac{1260000}{140}=9000$

Step2: Calculate units of tablet computers

Tablet computers are 65% of sales. So the number of tablet computers sold at break - even is $0.65\times9000 = 5850$

Step3: Calculate units of smartphones

Smartphones are 35% of sales. So the number of smartphones sold at break - even is $0.35\times9000=3150$

Answer:

Break - even units: 9000 Tablet computers: 5850 Smartphones: 3150