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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 8,960 DVDs and 4,480 equipment sets. Information on the two products is as follows:
DVDs | Equipment | |
Sets | ||
Price | $8.20 | $24.80 |
Variable cost per unit | 3.90 | 15.20 |
Total fixed cost is $74,620.
Compute the break-even quantity of each product. |
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