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 8,920 DVDs and 4,460 equipment sets. Information on the two products is as follows:
| DVDs | Equipment | |
|---|---|---|
| Sets | ||
| Price | $7.70 | $24.70 |
| Variable cost per unit | 4.40 | 15.10 |
Total fixed cost is $61,560.
| Required: | |
|---|---|
| 1. | What is the sales mix of DVDs and equipment sets? |
| 2. | Compute the break-even quantity of each product. |
2. Compute the break-even quantity of each product.
The break-even quantity for DVDs is .
The break-even quantity for equipment sets is .
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Auditing An International Approach
Authors: Wally J. Smieliauskas, Kathryn Bewley
7th edition
1259259870, 1259087468, 70968292, 978-1259087462
