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Problem
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
$100
$25
$300
Unit variable cost
50
15
200
Unit contribution margin
$50
$10
Sales mix
30%
60%
10%
Fixed casts are $ 620,000
Instructions:
1. Compute the break-even point in units for the company
Weighted-average unit contribution margin
Break-even point in units
2. Determine the number of product units to be sold and sales dollars at the break-even point
Units
Sales Dollars
Shoes
Gloves
Range finders
3. Determine how many units must be sold to earn a before-tax profit of $62.000
4. Determine how many units of each product must be sold to earn an after-tax profit of $65,100 if the company's tax rate is 30%
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Additional information from the accounting records
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