Question

Question 8 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 Pairs of Gloves Range- Finder Shoes Unit sales price $104 $242 $33 Unit variable costs 58 12 203 Unit contribution margin $46 $21 $39 Sales mix 35 % 40 % 25 % Fixed costs are $750,075. Calculate weiqhted-average unit contribution marqin. (Round answer to 2 decimal places e.g. 10.25.) Weighted-average unit contribution margin LINK Tο ΤΕXT Compute the break-even point in units for the company Break-even point units ΤNY το ΤΕΥΤ

Answer 1

Weighted average contribution margin = ($46 X35%) + ($21 X 40%) + ($39 X 25%) = $34.25

Breakeven point in units = $750,075 / $34.25 = 21,900 units

Shoes = 35% X 21,900 = 7,665

Gloves = 40% X 21,900 = 8,760

Range Finder = 25% X 21,900 = 5,475