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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   $100     $30     $260   Unit variable costs   60     10     200   Unit contribution margin   $40     $20     $60   Sales mix   35 %   55 %   10 %

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   $100     $30     $260   Unit variable costs   60     10     200   Unit contribution margin   $40     $20     $60   Sales mix   35 %   55 %   10 %

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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Question
Verify that the mix of units to be sold at the break-even point for each product line will generate a zero net income by computing the total contribution margin for each product line.

    
                                                                          $    
                                                                               
                                                                               
                                                                              $
                                                                               
                                                                              $
                                                                               
                                                                              $
 
GIVEN:
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   $100     $30     $260  
Unit variable costs   60     10     200  
Unit contribution margin   $40     $20     $60  
Sales mix   35 %   55 %   10 %

Fixed costs are $620,000.
 
Weighted-average unit contribution margin is $31
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