E6-9 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.
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.
Click here for the solution: Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance
