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Complete Par Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Unit sales price Unit variable costs Unit contribution margin Sales mix Fixed costs are $1,008,000. Pairs of Shoes $100 60 $40 40% Pairs of Gloves $80 10 $70 50% Range- Finder $270 220 $50 10% structions Compute the break-even point in units for the company. Determine the number of units to be sold at the break-even point for each product line. Verify that the mix of sales units determined in (b) will generate a zero net income.

Complete Par Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Unit sales price Unit variable costs Unit contribution margin Sales mix Fixed costs are $1,008,000. Pairs of Shoes $100 60 $40 40% Pairs of Gloves $80 10 $70 50% Range- Finder $270 220 $50 10% structions Compute the break-even point in units for the company. Determine the number of units to be sold at the break-even point for each product line. Verify that the mix of sales units determined in (b) will generate a zero net income.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E6-9B Complete Par Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Unit sales price Unit variable costs Unit contribution margin Sales mix Fixed costs are $1,008,000. Pairs of Shoes $100 60 $40 40% Pairs of Gloves $80 10 $70 50% Range- Finder $270 220 $50 10% nstructions 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.
Transcribed Image Text:E6-9B Complete Par Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Unit sales price Unit variable costs Unit contribution margin Sales mix Fixed costs are $1,008,000. Pairs of Shoes $100 60 $40 40% Pairs of Gloves $80 10 $70 50% Range- Finder $270 220 $50 10% nstructions 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.
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