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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 18,120 DVDs and 4,530 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $8.40 $24.50 Variable cost per unit 3.70 15.40 Total fixed cost is $103,230. 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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