Question
See the problem below....I have done 1 and 2, but one of the parts of 2 is incorrect.... I need to figure out what is
See the problem below....I have done 1 and 2, but one of the parts of 2 is incorrect.... I need to figure out what is wrong with it.....
Multiple-Product Breakeven
Peace River Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Peace River Products sold 18,000 DVDs and 4,500 equipment sets. Information on the two products is as follows:
DVDs | Equipment Sets | |||
Price | $12 | $14 | ||
Variable cost per unit | 4 | 5 |
Total fixed cost is $84,000.
Required:
1. What is the sales mix of DVDs and equipment sets? 4:1- THIS IS CORRECT
2. Compute the break-even quantity of each product. If required, round your calculations and answers to nearest whole value.
Break-even DVDs | 8196 units (THIS ONE IS WRONG) |
Break-even equipment sets | 2049units (THIS ONE IS CORRECT) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started