Question
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
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:
DVDs Equipment Sets
Price $8 $25Variable cost per unit 4 15
Total ?xed cost is $84,920.
Exercise 4-32 Multiple-Product Breakeven
Refer to the information for Cherry Blossom Products above.
Required:
1. What is the sales mix of DVDs and equipment sets?
2. Compute the break-even quantity of each product.
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