Refer to the information for Cherry Blossom Products below. Suppose that in the coming year,the company plans to produce an extra-thick yoga mat for sale to health clubs. The companyestimates that 9,000 mats can be sold at a price of $15 and a variable cost per unit of $9. Totalfixed cost must be increased by $28,980 (making total fixed cost $113,900). Assume that antici-pated sales of the other products, as well as their prices and variable costs, remain the same.

Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs anda basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Productssold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows:

Required:
1. What is the sales mix of DVDs, equipment sets, and yoga mats?
2. Compute the break-even quantity of each product.
3. Prepare an income statement for Cherry Blossom Products for the coming year. What is theoverall contribution margin ratio? Use the contribution margin ratio to compute overallbreak-even sales revenue.
4. Compute the margin of safety for the coming year in sales dollars.

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DVDs Equipment Sets Price Variable cost per unit S25 15 S8