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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 13,350 DVDs and 4,450 equipment sets. Information on the two products is as follows:
DVDs Equipment Sets Price $7.60 $25.00
Variable cost per unit 4.40 15.20
Total fixed cost is $75,660.
1. What is the sales mix of DVDs and equipment sets?
2. Compute the break-even quantity of each product.
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