E19.9 (LO 2) Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data.

Compute break-even point in units for a company with multiple products.

		Pairs of Shoes		Pairs of Gloves		Range- Finder
Unit sales price		$100		$30		$260
Unit variable costs		60		10		200
Unit contribution margin		$40		$20		$60
Sales mix		35%		55%		10%

Fixed costs are $620,000.

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.