Question Content AreaMultiple-Product Break-even, Break-Even Sales RevenueCherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basicequipment 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:|DVDsEquipment SetsPriceVariable cost per unitTotal fixed cost is $99,900.Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale tohealth clubs. The company estimates that 9,000 mats can be sold at a price of $16 and a variable costper unit of $9. Total fixed cost must be increased by $33,300 (making total fixed cost $133,200).Assume that anticipated sales of the other products, as well as their prices and variable costs, remainthe same.SalesTotal variable cost$8Contribution margin2. Compute the break-even quantity of each product.Total fixed cost$2543a. Prepare an income statement for Cherry Blossom Products for the coming year.Cherry Blossom Products Inc.Income StatementFor the Coming YearOperating income15

A variable costing income statement calculates the operating income by deducting the fixed cost…

Answered: Blossom Products Inc. produces and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Blossom Products Inc. produces and sells yoga-training products: how-to DVDs an hent set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold and 4.500 equipment sets. Information on the two products is as follows: