EZ Carry Corp is the maker of high quality golf bags. They currently have three

Question

EZ Carry Corp is the maker of high quality golf bags. They currently have three different lines of bags, which they sell to sporting goods and golf shops throughout the world EZ Carry sells a constant mix of 4 small bags for each medium-sized bag and 5 medium bags for each large-sized bag. Total fixed costs for the year are expected to be $2,251,252 (Note: round all decimals to three decimal places) Small Medium Large Sellngprice per bag Variable cost per bag $165 $106 $280 $180 $110 $66 The breakeven point in units (for the year)would be: 34,814 small, 8,578 medium, 1,641 large 35,814 small, 9,078 medium, 1,891 large 35,314 small, 8,828 medium, 1,766 large 35,814 small, 8,578 medium, 1,641 large

Explanation / Answer

Answer:35,814 small, 8,828 medium, 1,766 large

Breakeven point in units (for the year) Small Medium Large Selling price per bag 110 165 280 Variable cost per bag 66 106 180 Contribution Margin per bag 44 59 100 Constant Mix of bags 20 5 1 Contribution Margin 880 295 100 Contribution Margin per set 1275 Breakeven point in units = Fixed Costs/ Contribution per set =$2,251,252/1,275 =1765.688 Breakeven point in units Large size bag 1 X1765.688           1,766 Medium Sized bag 5 X1765.688           8,828 Small size bag 20X1765.688 35,314

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