Compute the breakeven in units
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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 Pairs
of Gloves Range
Finder
Unit sales price $110 $30 $240
Unit variable costs 50 10 190
Unit contribution margin$60 $20 $50
Sales mix 40% 40% 20%
Fixed costs are $864,360.
Compute the break-even point in units for the company. (Round computation for weighted-average contribution margin to 2 decimal places, e.g. 10.50, and final answer to 0 decimal places, e.g. 125.)
Determine the number of units to be sold at the break-even point for each product line. (Round answers to 0 decimal places, e.g. 125.)
Shoes
Gloves
Range finders
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Solution Summary
The solution computes the breakeven in units.
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