Question

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

$

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Compute the break-even point in units for the company.

Break-even point

units

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Determine the number of units to be sold at the break-even point for each product line.

Shoes
Gloves
Range Finders

Answer 1

Solution

Weighted-average unit contribution margin $ 34.25

Break even point = 21,900 Units

Breakeven at each product

Shoes	7,665
Gloves	8,760
Finder	5,475

Working

Working		Shoes	Gloves	Finder	Total
A	Price	$                   104.00	$                     33.00	$                 242.00
B	Variable Cost per unit	$                     58.00	$                     12.00	$                 203.00
C = A - B	Contribution Margin	$                     46.00	$                     21.00	$                   39.00
D	Product Mix	35.00%	40.00%	25.00%	100.00%
E = C x D	Weighted Average Contribution Margin	$                     16.10	$                       8.40	$                      9.75	$                 34.25

.

A	Total Fixed Cost plus profit	$           750,075.00
B	Weighted Average Contribution Margin	$                     34.25
C = A/B	Multi Product Break Even point	21,900
C x 35%	Shoes	7,665
C x 40%	Gloves	8,760
C x 25%	Finder	5,475