Exercise 19-9 Tiger Golf Accessories sells golf shoes, gloves, and a laser-guide

Question

Exercise 19-9 Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data Range- Pairs of Shoes Pairs of Gloves Unit sales price Unit variable costs Unit contribution margin Sales mix Finder $240 200 $40 $105 $32 59 $46 $21 38 % 42 % 20 % Fixed costs are $699,720 Calculate weighted-average unit contribution margin. (Round answer to 2 decimal places e.g. 10.25.) Weighted-average unit contribution margin LINK TO TEXT Compute the break-even point in units for the company. Break-even point units LINK TO TEXT Determine the number of units to be sold at the break-even point for each product line Shoes Gloves Range Finders

Explanation / Answer

Weighted average contribution margin=Respective contribution margin*Respective sales mix

=(46*0.38)+(21*0.42)+(40*0.2)=$34.3

Breakeven point=Fixed cost/Weighted contribution margin

=(699720/34.3)=20400 unit

Shoes(20400*0.38) 7752 Gloves(20400*0.42) 8568 Range Finders(20400*0.2) 4080 units.

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