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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 17,920 DVDs and 4,480 equipment sets. Information on the two products is as follows:
DVDs | Equipment | |
Sets | ||
Price | $8.00 | $25.40 |
Variable cost per unit | 4.10 | 15.50 |
Total fixed cost is $91,800.
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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