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 8,920 DVDs and 4,460 equipment sets. Information on the two products is as follows:
DVDs | Equipment Sets | |
Price | $7.60 | $25.40 |
Variable cost per unit | 4.10 | 14.90 |
Total fixed cost is $61,250.
Required:
1. What is the sales mix of DVDs and equipment sets?
Select
5:21:23:14:12:22:12:1
2. Compute the break-even quantity of each product.
The break-even quantity for DVDs is fill in the blank 2.
The break-even quantity for equipment sets is fill in the blank 3.
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