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.