Question
Multiple-Product Breakeven 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 Breakeven
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:
| DVDs | Equipment | |
|---|---|---|
| Sets | ||
| Price | $8 | $25 |
| Variable cost per unit | 4 | 15 |
Total fixed cost is $84,920.
| Required: | |
| 1. | What is the sales mix of DVDs and equipment sets? |
| 2. | Compute the break-even quantity of each product. |
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Auditing Practices A Complete Guide
Authors: Gerardus Blokdyk
2023rd Edition
1038804450, 978-1038804457
