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Palmer Golf

Price: $1.99


Palmer 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 100 30 260
Unit variable costs 60 10 200
Unit contribution margin 40 20 60
Sales mix 30% 60% 10%

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 net income.

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