Calculate the break-even point in units for a company with multiple products. E6.35 (LO 2, 5) Veejay 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 Pairs of Range- Shoes Gloves Finder Unit sales price $100 $30 $270 Unit variable 60 10 200 costs Unit $40 $20 $ 70 contribution margin Sales mix 40% 50% 10% Fixed costs are $660,000. Instructions a. Calculate 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 part (b) will generate a zero operating income.
Calculate the break-even point in units for a company with multiple products. E6.35 (LO 2, 5) Veejay 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 Pairs of Range- Shoes Gloves Finder Unit sales price $100 $30 $270 Unit variable 60 10 200 costs Unit $40 $20 $ 70 contribution margin Sales mix 40% 50% 10% Fixed costs are $660,000. Instructions a. Calculate 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 part (b) will generate a zero operating income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Calculate the break-even point in units for a company with multiple products.
E6.35 (LO 2, 5) Veejay 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 Pairs of
Range-
Shoes
Gloves
Finder
Unit sales price
$100
$270
Unit variable
60
200
costs
Unit
$40
$ 70
contribution
margin
Sales mix
40%
50%
10%
Fixed costs are $660,000.
Instructions
a. Calculate 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 part (b) will generate a zero
operating income.
$30
10
$20
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