Waterway 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 $105 $32 $245 Unit variable costs 59 10 205 Unit contribution margin $46 $22 $40 Sales mix 31% 41% 28% Fixed costs are $658,568. Weighted-average unit contribution margin: $34.48 Break-even point: 19,100 units Please answer this: 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.

Waterway 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 $105 $32 $245 Unit variable costs 59 10 205 Unit contribution margin $46 $22 $40 Sales mix 31% 41% 28% Fixed costs are $658,568. Weighted-average unit contribution margin: $34.48 Break-even point: 19,100 units Please answer this: 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.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 22E: Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart...

See similar textbooks

Related questions

Q: 14,245 units 15,771 units 21.029 units 22,080 units

A: o CVP analysis is used to identify the changes in costs and volume affect a company's operating…

Q: Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain…

A: Contribution margin is computed by deducted the variable cost from the sales revenue. In order to…

Q: Galaxy Sports Inc. manufactures and sells two styles of All Terrain Vehicles (ATVs), the…

A: Contribution margin ratio = Contribution margin / Sales

Q: Need Help please provide Solutions

A: Hello student! We can determine the Variable Expense per unit by referring to our Contribution…

Q: Cullumber Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures…

A: Weighted average contribution margin per unit is the summation of the unit contribution margin of…

Q: Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures…

A: Contribution margin is the amount which is computed after deducting the variable costs from the…

Q: Blossom Industries manufactures and sells three different models of wet-dry shop vacuum cleaners.…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is one of the Important Cost…

Q: Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain…

A: Sales = Sales unit volume x Sales price Variable cost of goods sold = Sales unit volume x Variable…

Q: Blossom Company makes 2 products, sleep masks and sleep socks. Additional information follows: Sleep…

A: Contribution margin is the difference between total net sales revenue and total variable cost. It…

Q: Assume that Painless Dental Clinics, Inc., offers three basic dental services. The following are its…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Switch Manufacturing Co. builds and sells switch harnesses for glove boxes. The sales price and…

A: The break-even point seems to be the level of activity at which a company's overall revenue equals…

Q: Answer the following questions: Required 1. Dalton Computers makes 5,500 units of a circuit board,…

A: Make-or-buy decisions must be based on the relevant cost of each option. Relevant costs in…

Q: SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $118,800, and…

A: Compute the contribution margin.

Q: Ivanhoe, Inc. produces three types of balloons-small, medium, and large-with the following…

A: When some input is in limited capacity , then we need to find out contribution per input. For…

Q: Smelly Feet Co. produces sports socks. The company has fixed costs of $157,000 and variable costs of…

A: Breakeven is the point at which an entity is in a situation of no profit and no loss. It is the…

Q: Product Profitability Analysis Galaxy Sports Inc. manufactures and sells two styles of All Terrain…

A: Contribution margin:The contribution margin refers to the cost accounting method that determines the…

Q: Brissett Corporation makes three products that use the current constraint, which is a particular…

A: In case of limited resources, product which is having more contribution margin per limited resources…

Q: Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing.…

A: Total variable costs are computed by multiplying the total variable costs per unit and the total…

Q: Number 4 for this is all I need please: Contribution Margin, Break-Even Units, Contribution Margin…

A: Margin of safety means sales revenue earned over and above breakeven sales revenue. Breakeven sales…

Q: Stratford Company distributes a lightweight lawn chair that sells for $30 per unit. Variable…

A: Break even point in units = Fixed costs / Contribution margin per unit Where,…

Q: avoid 30% of the fixed costs. Assume that factory space freed up by purchasing the part from an…

A: The differential analysis is performed to compare the different alternatives available with the…

Q: contribution margin ratio

A: Contribution Margin = ( Sales - variable expenses ) Contribution Margin ratio = (( Sales - Variable…

Q: Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow:…

A: The break-even point indicates that total units are required to be sold to recover the total cost…

Q: Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income…

A: Break even point :— It is the point of production where total cost is equal to total revenue. At…

Q: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A $…

A: Contribution marginThe part of sales revenue that is not used up by the variable cost and used to…

Question

Waterway 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	$105	$32	$245
Unit variable costs	59	10	205
Unit contribution margin	$46	$22	$40
Sales mix	31%	41%	28%

Fixed costs are $658,568.

Weighted-average unit contribution margin: $34.48

Break-even point: 19,100 units

Please answer this:

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.

Your answer is correct.
Determine the number of units to be sold at the break-even point for each product line.
Shoes
5,921
pairs of shoes
Gloves
7,831
pairs of gloves
5,348
Range Finders
range-finders

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The activity driver for the shipping activity of Withstand Inc. is the number of orders shipped. Product A uses 30 orders, and Product B uses 70 orders. Calculate the consumption ratios for each product. (Note: Round your answers to two decimal places.) a.0.30; 0.70 b.0.25; 0.75 c.0.20; 0.80 d.0.65; 0.35
Chapter 25 eBook 4 Show Me How Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,270 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $71 Factory overhead $199,500 Direct labor 37 Selling and administrative expenses 70,800 Factory overhead 22 Selling and administrative expenses 22 Total variable cost per unit $152 Voice Com desires a profit egual to a 15% rate of return on invested assets of $601,600. a. Determine the amount of desired profit from the production and sale of 5,270 cell phones. $ 90,240 v b. Determine the product cost per unit for the production of 5,270 of cell phones. Round your answer to the nearest whole dollar. 168 V per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 31 х%
ABC and CVP Analysis: Multiple Products Good Scent, Inc., produces two colognes: Rose and Violet. Of the two, Rose is more popular. Data concerning the two products follow: Violet Expected sales (in cases) Selling price per case Direct labor hours. Machine hours Receiving orders Packing orders Material cost per case Direct labor cost per case $8 The company uses a conventional costing system and assigns overhead costs to products using direct labor hours. Annual overhead costs follow. They are classified as fixed or variable with respect to direct labor hours. Fixed Direct labor benefits Machine costs Receiving department Packing department Total costs * All depreciation $ Rose 49,500 9,900 $101 $80 34,850 5,700 9,750 2,500 190,000* 222,500 116,000 Break-even cases of Rose Break-even cases of Violet 52 95 $49 28 46 $43 $6 Variable $170,310 316,290 $528,500 $486,600 Required: 1. Using the conventional approach, compute the number of cases of Rose and the number of cases of Violet that…
ABC Co. is selling its products to customers A, B and C. The following information is given for the year 2018-19. Customer A Customer B Customer C Sales in Lakhs (?) 15.90 20.0 15.0 Number of deliveries (including rush deliveries) 100 40 50 Number of orders 120 50 60 1.2 Average number of hours per delivery (for verification of goods | before loading for delivery) 1 1.30 Number of rush deliveries 2 1 2 Sales commission (% to sales) 4 5 Normal delivery cost is ? 1,250 per delivery. Order processing cost is ? 1,84,000. Verification cost of goods before loading is ? 5,32,500. Rush delivery cost is 180% of normal delivery cost. Variable cost is 75 percent of sales. (i) Present a customer wise profitability statement.
Don't give answer in image
Spectrum Corp. makes two products: C and D. The following data have been summarized: (Click the icon to view the data.) Spectrum Corp. desires a 25% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Spectrum have to charge the customer to achieve that gross profit? Round to two decimal places. Begin by selecting the formula to compute the amount that the company should charge for each product. Required sales price per unit Data table Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit Total costs assigned Print $ $ Product C 600.00 $ 300.00 270.00 1,170.00 S Done - X Product D 2,400.00 200.00 604.00 3,204.00
Spectrum Corp. makes two products: C and D. The following data have been summarized: (Click the icon to view the data.) Spectrum Corp. desires a 27% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Spectrum have to charge the customer to achieve that gross profit? Round to two decimal places. Begin by selecting the formula to compute the amount that the company should charge for each product. Total product cost per unit Spectrum should charge 2091.10 for Product C. Data table Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit Total costs assigned Print Product cost as a percentage of sales price Product C $ 900.00 $ 400.00 226.50 $ 1,526.50 $ Done Product D 2,400.00 100.00 531.00 3,031.00 X = Required sales price per unit G
Royal Lawncare Company produces and sells two packaged products - Weedban and Greengrow. Revenue and cost information relating to the products follow: \ table[[, Product], [, Weedban,Greengrow], [Selling price per unit,$8.00, $39.00
The following information is for Cabin Craft Apparel: Line Item Description East West Sales volume (units): Product Alpha 9, 100 10,600 Product Omega 4,500 9, 500 Sales price: Product Alpha $20 $18 Product Omega $25 $26 Variable cost per unit: Product Alpha $12 $12 Product Omega $15 $15 a. Determine the contribution margin for the East Region and West Region. East Region: fill in the blank 1 of 2$ West Region: fill in the blank 2 of 2$ b. Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent. East Region: fill in the blank 1 of 2 % West Region: fill in the blank 2 of 2%
K Suppose that a company offers quantity discounts. If up to 1,000 units are purchased, the unit price is $12; if more than 1,000 and up to 5,000 units are purchased, the unit price is $8.00; and if more than 5,000 units are purchased, the unit price is $7.50. Develop an Excel template using the VLOOKUP function to find the unit price associated with any order quantity and compute the total cost of the order. Complete the formulas in the spreadsheet below. Select the correct VLOOKUP function in cell C8 to find the unit price for the order quantity. (Type integers or decimals rounded to two decimal places as needed.) 1 2 3 5 6 7 8 6 A B C Purchase Quantity 1 to 1000 1001 to 5000 5001 or more Quantity Ordered Unit Price Total Cost 2400 D Unit Price $ $ $
Mallory Company uses the product cost method of applying the cost-plus approach to product pricing. It produces and sells Product X at a total cost of $35 per unit, of which $28 is product cost and $7 is selling and administrative expenses. In addition, the total cost of $35 is made up of $24 variable cost and $11 fixed cost. The desired profit is $8 per unit. Determine the markup percentage on product cost. Round your answer to one decimal place. %
Diagnostic Supplies has expected sales of 98,000 units per year, carrying costs of $5 per unit, and an ordering cost of $8 per order. a. What is the economic ordering quantity? Economic ordering quantity b-1. What is the average inventory? Average inventory b-2. What is the total carrying cost? Total carrying cost units units