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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.
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Pairs of Shoes   |
Pairs of Gloves   |
Range Finder   |
|
Unit sales price   |
100 Â Â |
30 Â Â |
250 Â Â |
|
Unit variable costs   |
60 Â Â |
10 Â Â |
200 Â Â |
|
Unit contribution margin   |
$40 Â Â |
$20 Â Â |
$50 Â Â |
|
Sales mix   |
40% Â Â |
50% Â Â |
10% Â Â |
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Fixed costs are $620,000.
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Instructions:
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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.)
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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.)
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c. Verify that the mix of sales units determined in (b) will generate a zero net income.
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