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...

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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

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