e19 9 green golf accessories sells golf shoes gloves and a laser 541922
E19-9 Green Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data.
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Pairs of |
Range- |
|
|
Unit sales price |
$100 |
$30 |
$250 |
|
Unit variable costs |
60 |
10 |
200 |
|
Unit contribution margin |
$40 |
$20 |
$50 |
|
Sales mix |
40% |
50% |
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.
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