Palmer 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-

Shoes Gloves Finder Unit sales price $100 $30 $260 Unit variable costs 60 10 200 Unit contribution margin $ 40 $20 $ 60 Sales mix 30% 60% 10%

Fixed costs are $630,000.

Instructions

(a) Compute the break-even point in units for the company.

(b) Determine the number of units to be sold at the break-even point for each product line.

(c) Verify that the mix of sales units determined in

(b) will generate a zero net income.AppendixLO1