Question

Concord Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below...

Concord 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 $102 $28 $245
Unit variable costs 58 12 201
Unit contribution margin $44 $16 $44
Sales mix 38 % 43 % 19 %


Fixed costs are $588,064.



Verify that the mix of units to be sold at the break-even point for each product line will generate a zero net income by computing the total contribution margin for each product line.

    
Shoes $_________
Range-Finders $_________
Gloves $_________
Total Sales = $ ________
Variable Costs $ ________
Contribution Margin = $ 588064
Fixed Costs 588064
Net Income $ 0
Business   Accounting   
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Homework Answers

Answer #1
Pair of Shoes Pair of Gloves Range Finder Total
Contribution per Unit $ 44 $ 16 $ 44
Sales Mix 38% 43% 19%
Weighted Contribution per unit $ 17 $ 7 $ 8 $ 32
Fixed Cost $ 558,064
Break Even Sales in Units 6635.30413 7508.370463 3317.652065 $ 17,461
Selling Price Per unit $ 102 $ 28 $ 245
Break Even Sales in Dollar amount $ 676,801 $ 210,234 $ 812,825 $ 1,699,860
Less:- Variable Cost $ 384,848 $ 90,100 $ 666,848 $ 1,141,796
Contribution $ 291,953 $ 120,134 $ 145,977 $ 558,064
Less:- Fixed Cost $ 558,064
Net Income $ 0
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