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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 9,020 DVDs and 4,510 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8.40 $25.10 Variable cost per unit 4.40 14.60 Total fixed cost is $72,150. 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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