PRNER VRST ON BACK NEXT Exercise 6-9 Tiger Golf Accessories sells golf shoes, gl

Question

PRNER VRST ON BACK NEXT Exercise 6-9 Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are data. unit cost and sales Pairs ofPairs of Range Shoes Gloves $33 10 $23 Finder Unit sales price Unit variable costs Unit contribution margin Sales mix $105 205 $37 $47 32 % 44 % 24 % Fixed costs are $653,568 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

Answer a.

Weighted-average Unit Contribution Margin = 32% * $47 + 44% * $23 + 24% * $37
Weighted-average Unit Contribution Margin = $34.04

Answer b.

Break-even Point = Fixed Costs / Weighted-average Unit Contribution Margin
Break-even Point = $653,568 / $34.04
Break-even Point = 19,200 units

Answer c.

Company’s breakeven Point = 19,200 units
Sales Mix = 32% : 44% : 24%

Shoes’ Breakeven Point = 32% * 19,200
Shoes’ Breakeven Point = 6,144

Gloves’ Breakeven Point = 44% * 19,200
Gloves’ Breakeven Point = 8,448

Range Finders’ Breakeven Point = 24% * 19,200
Range Finders’ Breakeven Point = 4,608

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