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Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, pilows). Last year,
Multiple-Product Break-even, Break-Even Sales Revenue Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, pilows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows Equipment Sets $25 15 DVDs $8 Variable cost per unit Total fixed cost is $88,560. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimate 9,000 mats can be sold at a price of $19 and a variable cost per unit of $12. Total fixed cost must be increased by $29,520 (making otal fixed cost $118,080). Assume that anticipated sales of the other products, as well as their prices and variable costs, remain the sa
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