Question

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 Gloves Range- Finder $29 Pairs of Shoes $103 60 $43 32 % Unit sales price Unit variable costs Unit contribution margin Sales mix u $242 200 $42 $18 42% 26 % Fixed costs are $602,888. Calculate weighted average unit contribution margin. (Round answer to 2 decimal places e.g. 10.25.) Weighted average unit contribution margin Compute the break-even point in units for the company. Break-even point units Determine the number of units to be sold at the break-even point for each product line. Shoes pairs of shoes Gloves pairs of gloves Range Finders range-finders Verify that the mix of sales units to be sold at the break-even point for each product line will generate a zero net income. Tiger Golf Accessories CVP Income Statament

Answer 1

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Sales Price Variable Cost Contribution Shoes Gloves $ 103 $ 29 $ 60 $ 11 $ 43 $ 18 Range Finder $ 242 200 $ 42 Sales Mix 32% 42% 26% Weighted Avg Contribution $ 13.76 $ 7.56 $ 10.92 Total Weighted Avg Contribution I) $ 32.24 II) Break-Even Point 18,700 Units (Fixed Cost/ Contribution Per Unit) ($602,888/32.24) III) Shoes Ici % 32% 400 Units Computation 5,984 |(18,700*32%) LARA 7 OM 1710 700*400A

III) Shoes Gloves Range Finder Total % 32% 42% 26% 100% Units Computation 5,984 (18,700*32%) 7,854 18,700*42%) 4,862 (18,700*26%) 18,700 IV) Tiger Golf Accessories CVP Income Statement Sales of Shoes (5984*103) Sales of Gloves (7854*29) Sales of Range Finder (4862*242) Total Sales Less: Variable Cost (5984*60)+(7854*11)+(4862*200) Contribution Margin Less: Fixed Cost Net Inccome 616.352 227,766 1,176,604 2,020,722 1,417,834 602,888 602888