Palmer Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data.

Fixed costs are $630,000.

Instructions
(a) Compute the break-even point in units for the company.
(b) Determine the number of units to be sold at the break-even point for each product line.
(c) Verify that the mix of sales units determined in (b) will generate a zero netincome.

Transcribed Image Text:

Pairs of Shoes $100 Pairs of Gloves $30 10 $20 60% Range- Finder $260 200 S 60 10% Unit sales price Unit variable costs Unit contribution margin Sales mix 60 $ 40 30%