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. A. Calculate weighted-average unit contribution margin. (Round answer to 2 decimal places e.g. 10.25.) Weighted-average unit contribution margin $ B. Compute the break-even point in units for the company. Break-even point units C. Determine the number of units to be sold at the break-even point for each product line. Shoes pairs of shoes Gloves pairs of gloves Range Finders range-finders
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. A. Calculate weighted-average unit contribution margin. (Round answer to 2 decimal places e.g. 10.25.) Weighted-average unit contribution margin $ B. Compute the break-even point in units for the company. Break-even point units C. Determine the number of units to be sold at the break-even point for each product line. Shoes pairs of shoes Gloves pairs of gloves Range Finders range-finders
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 16MC: Break-even for a multiple product firm. can be calculated by dividing total fixed costs by the...
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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 |
Pairs of |
Range- |
|||||||
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.
A.
Calculate weighted-average unit contribution margin. (Round answer to 2 decimal places e.g. 10.25.)
Weighted-average unit contribution margin |
$ |
B.
Compute the break-even point in units for the company.
Break-even point |
units |
C.
Determine the number of units to be sold at the break-even point for each product line.
Shoes |
|
pairs of shoes | |
Gloves |
|
pairs of gloves | |
Range Finders |
|
range-finders |
D.
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc0603834-a839-4b2d-a2db-fc20bf5fdfa1%2F39378a53-3480-4d99-8169-674c2286364d%2F7w3cp19_processed.png&w=3840&q=75)
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
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