Question
In: Accounting
Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below...
|
Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data.
Calculate weighted-average unit contribution margin. (Round answer to 2 decimal places e.g. 10.25.)
eTextbook and Media
Compute the break-even point in units for the company.
eTextbook and Media
Determine the number of units to be sold at the break-even point for each product line.
eTextbook and Media
Verify that the mix of sales units to be sold at the break-even point for each product line will generate a zero net income.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed costs are $610,130.
Calculate weighted-average unit contribution margin. (Round answer to 2 decimal places e.g. 10.25.)
| Weighted-average unit contribution margin |
$Type your answer here |
eTextbook and Media
Compute the break-even point in units for the company.
| Break-even point |
Type your answer here units |
eTextbook and Media
Determine the number of units to be sold at the break-even point for each product line.
| Shoes | pairs of shoes | ||
| Gloves | pairs of gloves | ||
| Range Finders | range-finders |
eTextbook and Media
Verify that the mix of sales units to be sold at the break-even point for each product line will generate a zero net income.
| Tiger Golf
Accessories CVP Income Statament |
||||
| Contribution MarginFixed CostsGross ProfitNet Income (Loss)Sales - GlovesSales - Range-FindersSales - ShoesTotal SalesVariable Costs | $ | |||
| Contribution MarginFixed CostsGross ProfitNet Income (Loss)Sales - GlovesSales - Range-FindersSales - ShoesTotal SalesVariable Costs | ||||
| Contribution MarginFixed CostsGross ProfitNet Income (Loss)Sales - GlovesSales - Range-FindersSales - ShoesTotal SalesVariable Costs | ||||
| Contribution MarginFixed CostsGross ProfitNet Income (Loss)Sales - GlovesSales - Range-FindersSales - ShoesTotal SalesVariable Costs | $ | |||
| Contribution MarginFixed CostsGross ProfitNet Income (Loss)Sales - GlovesSales - Range-FindersSales - ShoesTotal SalesVariable Costs | ||||
| Contribution MarginFixed CostsGross ProfitNet Income (Loss)Sales - GlovesSales - Range-FindersSales - ShoesTotal SalesVariable Costs | $ | |||
| Contribution MarginFixed CostsGross ProfitNet Income (Loss)Sales - GlovesSales - Range-FindersSales - ShoesTotal SalesVariable Costs | ||||
| Contribution MarginFixed CostsGross ProfitNet Income (Loss)Sales - GlovesSales - Range-FindersSales - ShoesTotal SalesVariable Costs | $ | |||
Solutions
Expert Solution
Answer 1. Weighted-average unit contribution margin = $32.98
Explanation:
Weighted-average unit contribution margin = Unit contribution margin * Sales mix.
= ($47 *38%) + ($18 * 44%) + ($40 * 18%)
= $17.86 + $7.92 + $7.20 = $32.98
Answer 2. Break-even point = 18,500 units
Explanation:
Break-even point = Fixed costs are / Weighted-average unit contribution margin
= $610,130 / $32.98 = 18,500 units.
Answer 3.
| Break-even point for each product line | |
| Shoes | 7,030 pairs of shoes |
| Gloves | 8,140 pairs of gloves |
| Range Finder | 3,330 range-finders |
Explanation:
Break-even point for each product line = ( Break-even point in units for the company * Sales mix)
Shoes = 18,500 units * 38% = 7,030 pairs of shoes
Gloves = 18,500 units * 44% = 8,140 pairs of gloves
Range Finder = 18,500 units * 18% = 3,330 range-finders
Answer 4.
Tiger Golf Accessories
CVP Income Statamente
| Sales - Shoes (7,030 * $105) | 738,150 | |
| Sales - Gloves (8,140 * $30) | 244,200 | |
| Sales - Range Finder (3,330 * $240) | 799,200 | |
| Total sales | 1,781,550 | |
| Variable costs [(7,030 * $58) + (8,140 * $12) + (3,330 * $200)] | 1,171,420 | |
| Contribution margin | 610,130 | |
| Fixed costs | 610,130 | |
| Net Income | $0 |
ekkarill92 answered 2 years agoRelated Solutions
Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below...
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
$105
$33
$242
Unit variable costs
58
10
205
Unit contribution margin
$47
$23
$37
Sales mix
32
%
44
%
24
%
Fixed costs are $653,568.
Incorrect answer iconYour answer is incorrect.
Calculate weighted-average unit contribution margin.
(Round answer to 2 decimal places e.g.
10.25.)
Weighted-average...
Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below...
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
$104
$33
$242
Unit variable costs
58
12
203
Unit contribution margin
$46
$21
$39
Sales mix
35
%
40
%
25
%
Fixed costs are $750,075.
Calculate weighted-average unit contribution margin.
(Round answer to 2 decimal places e.g.
10.25.)
Weighted-average unit contribution margin
$
eTextbook and...
Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below...
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 $104 $32 $241 Unit variable costs 59 11 205
Unit contribution margin $45 $21 $36 Sales mix 36 % 41 % 23 % Fixed
costs are $694,890.
(a1) Calculate weighted-average unit contribution margin. (Round
answer to 2 decimal places e.g. 10.25.) Weighted-average unit
contribution margin
(a2) Calculate...
E19.9 (LO 2) Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures...
E19.9 (LO 2) Tiger Golf Accessories sells golf shoes, gloves,
and a laser-guided range-finder that measures distance. Shown below
are unit cost and sales data.
Compute break-even point in units for a company with
multiple products.
Pairs of
Shoes
Pairs of
Gloves
Range-
Finder
Unit sales price
$100
$30
$260
Unit variable costs
60
10
200
Unit contribution margin
$ 40
$20
$ 60
Sales mix
35%
55%
10%
Fixed costs are $620,000.
Instructions
a. Compute the break-even point in...
Exercise 6-9 (Video) Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures...
Exercise 6-9 (Video)
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
$105
$33
$242
Unit variable costs
58
10
205
Unit contribution margin
$47
$23
$37
Sales mix
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...
Krewatch, Inc., is a vertically integrated manufacturer and retailer of golf clubs and accessories (gloves, shoes,...
Krewatch, Inc., is a vertically integrated manufacturer and
retailer of golf clubs and accessories (gloves, shoes, bags, etc.).
Krewatch maintains separate financial reporting systems for each of
its facilities. The company experienced the following events in
2017:
1. After several years of production problems at the accessories
manufacturing plant, Krewatch sold the plant to an investor group
headed by a former manager at the plant.
2. Krewatch incurred restructuring costs of $12,562,990 when it
eliminated a layer of middle management....
Bennington Golf has developed a new laser range finder. The company has projected sales of 14,900,...
Bennington Golf has developed a new laser range finder. The
company has projected sales of 14,900, 17,600, 19,200, 21,400, and
15,300 units per year over the next five years, respectively.
Equipment necessary for production will cost $3.4 million today and
will be depreciated on a three-year MACRS schedule over the life of
the project. The equipment can be sold for $275,000 at the end of
the project’s life. The price and variable costs per unit in
today’s dollars are $118...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- In the article from Forbes notes that the goal of a leader is not to clone...
- Many people keep time using a 24 hour clock (11 is 11am and 23 is 11pm,...
- UNIX ONLY -- DIFFICULT LAB ASSIGNMENT This is an extremely difficult subject for me. Could you...
- Do you know why your credit card can be refused even though you are profitable?
- The Following Java expression: S/10 * 10 + 10 – S = C Show that this...
- Year Cash Flow 0 −$9,700 1 5,800 2 2,500 3 3,400 &nb
- In a two – story building, an exterior column is to be designed for a service...
ADVERTISEMENT