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Tiger Golf Accessories sells golf shoes gloves and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data Pairs of Shoes Pairs of Gloves Range Finder

Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data.

 

 

 

 

 

 

 

 

Pairs of Shoes

 

 

Pairs of Gloves

 

 

Range Finder

 

 

Unit sales price

 

 

100

 

 

30

 

 

250

 

 

Unit variable costs

 

 

60

 

 

10

 

 

200

 

 

Unit contribution margin

 

 

$40

 

 

$20

 

 

$50

 

 

Sales mix

 

 

40%

 

 

50%

 

 

10%

 

 

 

 

 

Fixed costs are $620,000.

 

 

 

 

 

Instructions:

 

 

a. Compute the break-even point in units for the company. (Round computation for weighted-average contribution margin to 2 decimal places, e.g. 10.50, and final answer to 0 decimal places, e.g. 125.)

 

 

b. Determine the number of units to be sold at the break-even point for each product line. (Round answers to 0 decimal places, e.g. 125.)

 

 

c. Verify that the mix of sales units determined in (b) will generate a zero net income.

Jun 23 2020 View more View Less

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