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 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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.
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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.
Fixed costs are $620,000.
|
Pairs of |
Pairs of |
Range- |
|||||||
| 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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