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Question - Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder Mai measures distance. Shown below are unit cost and sales data.
Pairs of Shoes
Pairs of Gloves
Range-Finder
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-men point in units for the company.
(b) Determine the number of units to be sold at the break-men 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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