Answer: See explanation
Step-by-step explanation:
1. The estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year will be calculated thus:
Selling price per unit will be:
= ($1200 × 40%) + ($700 × 60%)
= 480 + 420
= $900
Variable cost per unit will be:
= ($600 × 40%) + ($350 × 60%)
= 240 + 210
= $450
Contribution margin will then be
= selling price per unit-variable cost
= $900 - $450
= $450
Therefore, the breakeven point in sales units of the overall product will be:
= fixed cost /contribution per unit
= $4,500,000 / $450
= 10000 units
2. The unit sales of both laptops and tablets for the current year will be:
Laptop = 10000 × 40% = 4000
Tablet = 10000 × 60% = 6000
3. Assume that the sales mix was 60% laptops and 40% tablet, the break-even will be:
Selling price per unit will be:
= ($1200 × 60%) + ($700 × 40%)
= 720 + 280
= $1000
Variable cost per unit will be:
= ($600 × 60%) + ($350 × 40%)
= 360 + 140
= $500
Contribution margin will then be
= selling price per unit-variable cost
= $1000 - $500
= $500
Therefore, the breakeven point in sales units of the overall product will be:
= fixed cost /contribution per unit
= $4,500,000 / $500
= 9000 units