Question

Tiger Golf Accessories sells golf shoes, gloves and laser-guided range finder that measures distance Below are unit cost and sales data.
Shoes Gloves Range find
Unit sales $100 $30 $250
Unit VC 60 10 200
Unit CM $40 $20 $50
Sales Mix 40% 50% 10%

Fixed cost are $620,000
a.) Compute 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 mis of sales units determined in (b) will generate a zero new income.

Answer 1

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