US­-Mobile Manufactures and Sells Two Products

US­-Mobile manufactures and sells two products, tablet computers and smartphones, in the ratio of 5:3.Fixed costs are $105,000, and the contribution margin per composite unit is $125. What number of each type of product is sold at the break-even point?

Explanation:

Break­even point in composite units = $105,000/$125 = 840 composite units

Number of products sold at break­even = 8 × 840 = 6,720 units

Number of tablet computers sold at break­even: 840 × 5 = 4,200 tablets

Number of smartphones sold at break­even: 840 × 3 = 2,520 phones