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 Pairs of Pairs of Range- Gloves Shoes 9O Finder Unit sales price Unit variable costs Unit contribution margin Sales mix $102 61 $41 $31 $242 200 $20 $42 30 % 40 % 30 % Fixed costs are $723,800 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

Explanation / Answer

Weighted average unit cntribution margin=(41*30%)+(20*40%)+(42*30%)= $32.9 Break even point=723800/32.9= 22000 Shoes 6600 =22000*30% Gloves 8800 =22000*40% Range finders 6600 =22000*30%

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