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E6-9 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
E6-9 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 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 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.
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