Question: Hello, please help to solve this Question, part (c). Thank you in advance, My answer was as follows, but (c) is wrong): (a1) Calculate weighted-average

Hello, please help to solve this Question, part (c). Hello, please help to solve this Question, part (c). Thank you in

Thank you in advance,

My answer was as follows, but (c) is wrong):

(a1) Calculate weighted-average unit contribution margin.

Weighted average unit contribution margin = Unit contribution margin* Sales mix = ($48*33%) + ($18*40%) + ($44*27%) = 15.84 + 7.2 + 11.88 = $34.92 per unit

(a2) Compute the break-even point in units for the company.

Break-even point in sales units= Fixed costs/ Weighted average unit contribution margin

$677,448 / 34.92 per unit = 19,400 units

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

Number of units to be sold at the break-even point for each product line = Break-even point in sales units * Sales mix

Shoes = 19,400 units*33% = 6,402 shoes

Gloves = 19,400 units*40% = 7,760 gloves

Range finders =19,400 units*27% = 5,238 range finders

advance, My answer was as follows, but (c) is wrong): (a1) Calculate

(c) 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.

WATERWAY GOLF ACCESSORIES

CVP INCOME STATEMENT

PARTICULARS

AMOUNT

$

Sales-Shoes

$106*6,402

= $678,612

Sales-Gloves

$30*7,760

= $232,800

Sales-Range finders

$245*5,238

= $1,283,310

Total sales

2,194,722

Less:- Variable costs

(6,402*$58)+(7,760*$12)+(5,238 *$201)

371,316 + 93,120 + 1,052,838

1,517,274

Contribution

677,448

Less:- Fixed costs

677,448

Net income

0

Sunland Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data Sales mix is determined based upon total units sold. Pairs of Shoes Pairs of Gloves Range- Finder $106 $30 $245 58 12 201 Unit selling price Unit variable costs Unit contribution margin Sales mix $48 $18 $44 33 % 40 % 27 % Fixed costs are $677,448. (21) Your answer is correct. Calculate weighted average unit contribution margin (Round answer to 2 decimal places eg. 10.25.) Weighted average unit contribution margin $ 34.92 e Textbook and Media Attempts: 1 of 3 used (22) Your answer is correct. Compute the break-even point in units for the company. Break-even point 19,400 units (b) Your answer is correct. Determine the number of units to be sold at the break-even point for each product line. Break-even point in units Shoes 6,402 pairs of shoes Gloves 7.760 pairs of gloves Range Finders 5.238 range-finders eTextbook and Media Attempts: 1 of 3 used (c) Your answer is partially correct. 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. SunlandGolf Accessories CVP Income Statament Contribution Margin - Shoes $ 678,612 Contribution Margin- Gloves 232,800 Contribution Margin-Range-Finders 1 283,310 Total Sales 2.194.722 Variable Costs 1,517 274 Net Income (Loss) $ 0

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