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Q.2 (a):What is meant by the term sales mix? How does sales mix affect the calculation of the break- even points? 2.2(b): Prime Golf Accessories
Q.2 (a):What is meant by the term sales mix? How does sales mix affect the calculation of the break- even points? 2.2(b): Prime Golf Accessories sells golf shoes, gloves and a laser-guided range finder that measure distance. Shown below are units cost and sales data. Pairs of Shoes Pairs of Gloves Range Finder Units Sales Price Rs. 100 Rs. 30 Rs. 260 Units Variable Costs 60 10 200 Units Contribution Rs. 40 Rs. 20 Rs. 60 Margin Sales Units 10% Fixed are Rs. 360,000 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. 30% 60% Costs
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