Discuss the below:
Sales Mix and Break-Even Sales
Q: New Wave Technology Inc. manufactures and sells two products, MP3 players and satellite radios. The fixed costs are $1,142,400, and the sales mix is 20% MP3 players and 80% satellite radios. The unit selling price and the unit variable cost for each product are as follows:
| Products |
Unit Selling Price |
Unit Variable Cost |
| MP3 players |
$80 |
|
$60 |
|
| Satellite radios |
200 |
|
120 |
|
a. Compute the break-even sales (units) for both products combined.
b. How many units of each product, MP3 players and satellite radios, would be sold at the break-even point?