Question
Multiple-Product Break-even 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,
Multiple-Product Break-even
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:
DVDsEquipment
SetsPrice$8.30$25.20Variable cost per unit3.9014.80
Total fixed cost is $99,120.
Required:
1.What is the sales mix of DVDs and equipment sets?
Select
2.Compute the break-even quantity of each product.
The break-even quantity for DVDs isfill in the blank 2
.
The break-even quantity for equipment sets isfill in the blank 3
.
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