Question

Data related to the expected sales of two types of netbook computers for LaSalle, Inc. for the current year, which is typical of recent years, are as follows:

Products	Unit Selling Price	Unit Variable Cost	Sales Mix
8” Netbook	$420.00	$300.00	75%
10” Netbook	540.00	340.00	25%

The estimated fixed costs for the current year are $861,840.

Instructions

Determine the estimated units of sales of the overall product necessary to reach the break-even point for the current year. ________________

Based on the break-even sales (units) in part (1), determine the unit sales of both the 8” netbook and the 10”netbook for the current year: 8”________units; 10”_________units.

Assume that the sales mix was 25% 8” netbook and 75% 10” netbook. What is the new break-even point (in units)? ___________________

Why is it so different from the break-even point in part (1) above?   ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Answer 1