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Category > Accounting Posted 07 Jun 2017 My Price 4.00

Palmer Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder

 

E6-9 Palmer 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

$260

Unit variable costs

60

10

200

Unit contribution margin

$ 40

$20

$ 60

Sales mix

30%

60%

10%

 
Fixed costs are $630,000.

 

Instructions

(a) Compute the break-even point in units for the company.

(b) Determine the number of units to be sold at the break-even point for each product line.

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


 

 

 

 

 

 
 

Answers

Alpha Geek
(8)
Status NEW Posted 07 Jun 2017 04:06 PM My Price 4.00

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Attachments

file 1496851743-Answer.docx preview (182 words )
E-----------6-9----------- P-----------alm-----------er -----------Gol-----------f A-----------cce-----------sso-----------rie-----------s s-----------ell-----------s g-----------olf----------- sh-----------oes-----------, g-----------lov-----------es,----------- an-----------d a----------- la-----------ser------------gu-----------ide-----------d r-----------ang-----------e-f-----------ind-----------er -----------tha-----------t m-----------eas-----------ure-----------s d-----------ist-----------anc-----------e. -----------Sho-----------wn -----------bel-----------ow -----------are----------- un-----------it -----------cos-----------t a-----------nd -----------sal-----------es -----------dat-----------a. ----------- -----------Pai-----------rsÂ----------- of----------- S-----------hoe-----------s P-----------air-----------s -----------of ----------- Gl-----------ove-----------s R-----------ang-----------e- ----------- Fi-----------nde-----------r -----------Uni-----------t s-----------ale-----------s p-----------ric-----------e $-----------100----------- $3-----------0 $-----------260----------- U-----------nit----------- va-----------ria-----------ble----------- co-----------sts----------- 60----------- 10----------- 20-----------0 -----------Uni-----------t c-----------ont-----------rib-----------uti-----------on -----------mar-----------gin----------- $ -----------40 -----------$20----------- $ -----------60 ----------- Sa-----------les----------- mi-----------x 3-----------0% -----------60%----------- 10-----------% -----------Fix-----------ed -----------cos-----------ts -----------are----------- $6-----------30,-----------000-----------. -----------Ins-----------tru-----------cti-----------ons----------- (-----------a) -----------Com-----------put-----------e t-----------he -----------bre-----------ak------------eve-----------n p-----------oin-----------t i-----------n u-----------nit-----------s f-----------or -----------the----------- co-----------mpa-----------ny.-----------
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