Waterway 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 $32 $245 Unit variable costs 59 10 205 Unit contribution margin $46 $22 $40 Sales mix 31% 41% 28% Fixed costs are $658,568. Weighted-average unit contribution margin: $34.48 Break-even point: 19,100 units Please answer this: Verify that the mix of units to be sold at the break-even point for each product line will generate a zero net income by computing the total contribution margin for each product line.
Waterway 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 $32 $245 Unit variable costs 59 10 205 Unit contribution margin $46 $22 $40 Sales mix 31% 41% 28% Fixed costs are $658,568. Weighted-average unit contribution margin: $34.48 Break-even point: 19,100 units Please answer this: Verify that the mix of units to be sold at the break-even point for each product line will generate a zero net income by computing the total contribution margin for each product line.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 19MC: A company sells two products, Model 101 and Model 202. For every one unit of Model 101, they sell...
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Waterway 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 |
Pairs of |
Range- |
|||||||
| Unit sales price | $105 | $32 | $245 | ||||||
| Unit variable costs | 59 | 10 | 205 | ||||||
| Unit contribution margin | $46 | $22 | $40 | ||||||
| Sales mix | 31% | 41% | 28% |
Fixed costs are $658,568.
| Weighted-average unit contribution margin: $34.48 |
Break-even point: 19,100 units
Please answer this:
Verify that the mix of units to be sold at the break-even point for each product line will generate a zero net income by computing the total contribution margin for each product line.
Transcribed Image Text:Verify that the mix of units to be sold at the break-even point for each product line will generate a zero net income by computing
the total contribution margin for each product line.
Sales - Gloves
Sales - Range-Finders
Sales - Shoes
Total Sales
Variable Costs
Contribution Margin
Fixed Costs
Net Income (Loss)
%24
%24
%24
%24
Transcribed Image Text:Your answer is correct.
Determine the number of units to be sold at the break-even point for each product line.
Shoes
5,921
pairs of shoes
Gloves
7,831
pairs of gloves
5,348
Range Finders
range-finders
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