strap, and small pillows). Last year, Cherry Blossom Products sold 17,880 DVDs and 4,470 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $7.90 $25.30 Variable cost per unit 4.00 14.60 Total fixed cost is $89,420. Required: 1. What is the sales mix of DVDs and equipment sets? 2. Compute the break-even quantity of each product.
strap, and small pillows). Last year, Cherry Blossom Products sold 17,880 DVDs and 4,470 equipment sets. Information on the two products is as follows: DVDs Equipment Sets Price $7.90 $25.30 Variable cost per unit 4.00 14.60 Total fixed cost is $89,420. 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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Question
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 17,880 DVDs and 4,470 equipment sets. Information on the two products is as follows:
|
|
DVDs
|
Equipment
|
|
Sets
|
||
| Price | $7.90 | $25.30 |
| Variable cost per unit | 4.00 | 14.60 |
Total fixed cost is $89,420.
| Required: | |
| 1. | What is the sales mix of DVDs and equipment sets? |
| 2. | Compute the break-even quantity of each product. |
1. What is the sales mix of DVDs and equipment sets?
2. Compute the break-even quantity of each product.
The break-even quantity for DVDs is
The break-even quantity for equipment sets is
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