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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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.
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