Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom
Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 17,920 DVDs and 4,480 equipment sets. Information on the two products is as follows:
DVDs | Equipment | |
Sets | ||
Price | $8.20 | $25.50 |
Variable cost per unit | 4.30 | 15.20 |
Total fixed cost is $108,780.
Required: | |
1. | What is the sales mix of DVDs and equipment sets? |
2. | Compute the break-even quantity of each product. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started