Response to the following problem:
New Wave Technology Inc. manufactures and sells two products, MP3 players and satellite radios. The fixed costs are $300,000, and the sales mix is 40% MP3 players and 60% 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 $ 60.00 $45.00
Satellite radios 100.00 60.00
(a) Compute the break-even sales (units) for the overall product, E.
(b) How many units of each product, MP3 players and satellite radios, would be sold at the break-even point?