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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 13,410 DVDs and 4,470 equipment sets. Information on the two products is as follows:
DVDs | Equipment | |
Sets | ||
Price | $8.30 | $24.50 |
Variable cost per unit | 4.30 | 15.20 |
Total fixed cost is $74,550.
Required: | |
1. | What is the sales mix of DVDs and equipment sets? |
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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