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Question - Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder Mai 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-men point in units for the company.

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

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

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92572973
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