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.
| Pairs of shoes Don't use plagiarized sources. Get Your Custom Essay on e19 9 green golf accessories sells golf shoes gloves and a laser 541922 For $10/Page 0nly | 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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