Problem
Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range finder that measures distance. Shown below are unit cost and sales data.
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Pairs of Shoes
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Pairs of Gloves
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Range-Finder
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Unit Sales Price
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$100
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$25
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$300
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Unit variable cost
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50
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15
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200
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Unit contribution margin
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$50
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$10
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$100
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Sales mix
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30%
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60%
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10%
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Fixed casts are $ 620,000
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Instructions:
1. Compute the break-even point in units for the company
Weighted-average unit contribution margin
Break-even point in units
2. Determine the number of product units to be sold and sales dollars at the break-even point
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Units
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Sales Dollars
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Shoes
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Gloves
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Range finders
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3. Determine how many units must be sold to earn a before-tax profit of $62.000
4. Determine how many units of each product must be sold to earn an after-tax profit of $65,100 if the company's tax rate is 30%
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Units
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Shoes
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Gloves
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Range finders
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