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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. 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.

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
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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