Question
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 $7.90 $25.10 Variable cost per unit 3.90 14.80 Total fixed cost is $97,310.
1. What is the sales mix of DVDs and equipment sets? Select 4:1
2. Compute the break-even quantity of each product.
The break-even quantity for DVDs is? 27,412 .
The break-even quantity for equipment sets is? 6,853 .
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