Instructions Part 1: Sales Mix Instructions and Part 2: Break-Even Multiple-Product Break-even, Break-Even Sales Revenue 1. What is the sales mix of DVDs, equipment sets, and yoga mats? 3:1:2 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 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: 2. Compute the break-even quantity of each product. DVDs Equipment Sets Break-even DVDs 3,860 X units Price $8 $25 Break-even equipment sets 11,580 X units Variable cost per unit 4 15 Break-even yoga mats 5,840 X units Total fixed cost is $82,370. 3a. Prepare an income statement for Cherry Blossom Products for the coming year. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at a price of $19 and a variable cost per unit of $11. Total fixed cost must be increased by $27,450 (making total fixed cost $109,820). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the same. Cherry Blossom Products Inc. Income Statement For the Coming Year Contribution margin X $ $ Part 3b: Contribution Margin Ratio and Part 4: Margin of Safety 3b. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. (Note: Round the contribution margin ratio to the nearest whole percent; round the break-even sales revenue to the nearest dollar.) Overall contribution margin ratio % Overall break-even sales revenue 4. Compute the margin of safety for the coming year in sales dollars. Feedback Check My Work 3b. Divide total contribution margin by sales. Divide total fixed costs by contribution margin ratio. 4. Compute the difference between expected sales and break-even sales