E6-9 (a,b)
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 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.
Compute the break-even point in units for the company.
Determine the number of units to be sold at the break-even point for each product line.
Shoes
Gloves
Range finders