Question
Concord 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 ShoesPairs
Concord 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 ShoesPairs of GlovesRange-Finder
Unit sales price $102 $28 $245
Unit variable costs 58 12 201
Unit contribution margin $44 $16 $44
Sales mix 38 % 43%19%
Fixed costs are $588,064.
Calculate weighted-average unit contribution margin. (Round answer to 2 decimal places e.g. 10.25.)
Weighted-average unit contribution margin $
Compute the break-even point in units for the company.
Break-even point
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
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.
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