Question
In: Accounting
Tiger Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below...
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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.
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.
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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...
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Krewatch maintains separate financial reporting systems for each of
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2017:
1. After several years of production problems at the accessories
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Equipment necessary for production will cost $3.4 million today and
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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...
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