Sales mix and break-even salesnew wave technology inc, Ask an Expert

Management Studies

Sales Mix and Break-Even Sales

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.
units

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

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92784540

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