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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
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...
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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.

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. Sales - Gloves Sales - Range-Finders Sales - Shoes Total Sales Variable Costs Contribution Margin Fixed Costs Net Income (Loss) %24 %24 %24 %24
Transcribed Image Text: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. Sales - Gloves Sales - Range-Finders Sales - Shoes Total Sales Variable Costs Contribution Margin Fixed Costs Net Income (Loss) %24 %24 %24 %24
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
Transcribed Image Text: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
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