MULTIPLE-PRODUCT BREAK EVEN Switzer Company produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Switzer sold 10,000 DVDs and 5,000 equipment sets. Information on the two products is as follows:

DVDs Equipment Sets Price $12 $15 Variable cost per unit 4 6 Total fixed costs are $70,000.

Required:

. What is the sales mix of DVDs and equipment sets?

. Compute the break-even quantity of each product.

Exercise