Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows:
.................................DVD.......Equipment Sets
Price............................. $8............... $25
Variable cost per unit.......... 4 ................ 15
Total fixed cost is $84,920.
Required:
1. What is the sales mix of DVDs and equipment sets?
2. Compute the break-even quantity of each product.
Break-even DVDs ......................... units
Break-even equipment sets ............... units