Question: 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
|
$110
|
|
$30
|
|
$240
|
|
|
Unit variable costs
|
50
|
|
10
|
|
190
|
|
|
Unit contribution margin
|
$60
|
|
$20
|
|
$50
|
|
|
Sales mix
|
40%
|
|
40%
|
|
20%
|
|
Fixed costs are $864,360.
Q1. Compute the break-even point in units for the company.
Q2. Determine the number of units to be sold at the break-even point for each product line.