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 13,590 DVDs and 4,530 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $7.70 $24.80 Variable cost per unit 4.10 15.00 Total fixed cost is $76,220. Required: 1. What is the sales mix of DVDs and equipment sets? 2. Compute the break-even quantity of each product.
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 13,590 DVDs and 4,530 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $7.70 $24.80 Variable cost per unit 4.10 15.00 Total fixed cost is $76,220. Required: 1. What is the sales mix of DVDs and equipment sets? 2. Compute the break-even quantity of each product.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 13,590 DVDs and 4,530 equipment sets. Information on the two products is as follows:
|
|
DVDs
|
Equipment
|
|
Sets
|
||
| Price | $7.70 | $24.80 |
| Variable cost per unit | 4.10 | 15.00 |
Total fixed cost is $76,220.
| 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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