Tiger Golf Accessories sells shoes, gloves and laser-guided range finder.Below is the unit cost and sales data:
Shoes Gloves Range-Finder
Unit Sales Price $100 $30 $250
Unit Variable cost 60 10 200
Unit contribution margin $40 $20 $ 50
Sales Mix 40% 50% 10%
Fixed cost are $620,000
a.) Compute the break-even point in units for the company.
b.) determine the number of units to be sold at the break-even point for each product line.
c.) Verify that the mix of sales units deterimed in (b) will generate a zero net income.
What formulas are being used here?
