Sunland Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Sales mix is determined based upon total units sold. Unit selling price Unit variable costs Unit contribution margin Sales mix Fixed costs are $677,448. Pairs of Shoes $106 58 $48 33 % Pairs of Gloves $30 12 $18 40 % Range- Finder $245 201 $44 27 %
Sunland Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Sales mix is determined based upon total units sold. Unit selling price Unit variable costs Unit contribution margin Sales mix Fixed costs are $677,448. Pairs of Shoes $106 58 $48 33 % Pairs of Gloves $30 12 $18 40 % Range- Finder $245 201 $44 27 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Solve part C only
![(b)
✔️ Your answer is correct.
Determine the number of units to be sold at the break-even point for each product line.
| Break-even point in units |
| -------------------------- |
| Shoes | 6402 pairs of shoes |
| Gloves | 7760 pairs of gloves |
| Range Finders | 5238 range-finders |
Assistance Used
Attempts: 1 of 5 used
(c)
Verify that the mix of sales units to be sold at the break-even point for each product line will generate a zero net income.
**Sunland Golf Accessories CVP Income Statement**
[Dropdown selections and fields for numerical inputs are present, but details are not filled. The form appears to be used for calculating or verifying income statements.]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9afede80-7ab7-4e70-b365-1e404cbce720%2F3219705e-6e43-458e-bdb0-de3f016ec7c8%2Fdh42b64_processed.png&w=3840&q=75)
Transcribed Image Text:(b)
✔️ Your answer is correct.
Determine the number of units to be sold at the break-even point for each product line.
| Break-even point in units |
| -------------------------- |
| Shoes | 6402 pairs of shoes |
| Gloves | 7760 pairs of gloves |
| Range Finders | 5238 range-finders |
Assistance Used
Attempts: 1 of 5 used
(c)
Verify that the mix of sales units to be sold at the break-even point for each product line will generate a zero net income.
**Sunland Golf Accessories CVP Income Statement**
[Dropdown selections and fields for numerical inputs are present, but details are not filled. The form appears to be used for calculating or verifying income statements.]
Transcribed Image Text:Sunland Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Below is the unit cost and sales data. The sales mix is determined based on total units sold.
**Table of Products**
- **Pairs of Shoes**
- Unit selling price: $106
- Unit variable costs: $58
- Unit contribution margin: $48
- Sales mix: 33%
- **Pairs of Gloves**
- Unit selling price: $30
- Unit variable costs: $12
- Unit contribution margin: $18
- Sales mix: 40%
- **Range-Finder**
- Unit selling price: $245
- Unit variable costs: $201
- Unit contribution margin: $44
- Sales mix: 27%
The fixed costs are $677,448.
### Calculations
**(a1)**
Calculate the weighted-average unit contribution margin. *(Round answer to 2 decimal places, e.g., 10.25.)*
- Weighted-average unit contribution margin: $34.92
This calculation is confirmed to be correct.
**(a2)**
Compute the break-even point in units for the company.
- Break-even point: 19,400 units
This calculation is confirmed to be correct.
**Notes:**
- The weighted-average unit contribution margin is calculated considering the contribution margin and sales mix of each product.
- The break-even point represents the units needed to cover all fixed and variable costs.
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