Problem
Sales Mix and Break-Even Sales New Wave Technology Inc. manufactures and sells two products, MP3 players and satellite radios. The fixed costs are $249,000, and the sales mix is 80% MP3 players and 20% 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 $70 $50 Satellite radios 180 110.
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? MP3 players units Satellite radios units