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.
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|
Pairs of Shoes
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Pairs of Gloves
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Range-Finder
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|
Unit sales price
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$100
|
$30
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$250
|
|
Unit variable costs
|
60
|
10
|
200
|
|
Unit contribution margin
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$40
|
$20
|
$50
|
|
Sales mix
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40%
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50%
|
10%
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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.