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Tiger 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
Tiger 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 | $105 | $33 | $244 | ||||||
Unit variable costs | 58 | 13 | 203 | ||||||
Unit contribution margin | $47 | $20 | $41 | ||||||
Sales mix | 36 | % | 41 | % | 23 | % |
Fixed costs are $735,915.
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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