US Kimmel, Accounting, Ge PRT Gradebe ORION Dewnleadable eTextbook Exercise 1 Ti

Question

US Kimmel, Accounting, Ge PRT Gradebe ORION Dewnleadable eTextbook Exercise 1 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 Gloves Finder $28 10 Pairs of 102 Unit sales price Unit variable costs Unit contnbution margn Sales mox $40 Fixed costs are $583,200. Calculate weighted-average unit contribution margin. (Round answer to 2 decimal places e.g, 10.25.) Compute the break-even pont units for the company. Break-even point C: 5 6 7 8 9 0. 3 4

Explanation / Answer

a) Weighted average contribution margin per unit = (44*30%+18*40%+40*30%) = 32.40 per unit

b) Break even unit = 583200/32.40 = 18000 units

c) Shoes = 18000*30% = 5400 units

Gloves = 18000*40% = 7200 units

Range finders = 18000*30% = 5400 units

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