Question

Instructions Cherry Blossom Products Inc. produces and sells yoga training products: how-to DVDs and a basic equipment (blocks, stre, and also Layo Cherry Blossom Products sold 13,560 DVDs and 4,520 equipment sets. Information on the two produdessas tolos Equipment Sets DVDs $8.30 Price $24.50 15.00 Variable cost per unit 3.50 Total fixed cost is $100,380 Required: 1. What is the sales mix of DVDs and equipment sets? 2. Compute the break-even quantity of each product All work saved

Answer 1

Determination of Sales Mix of each product :- Product Sales Sales Mix % DVD's 1,12,548 50.40% Equipment sets 1,10,740 49.60% 2,23,288 Determination of Sales Mix of each product :- Weighted Product Contribution Sales Price Variable cost per unit per unit unit Margin per Sales Miro Contribution Margin per unit 3.50 4.80 2.42 DVD's Equipment sets 8.30 24.50 50.40% 49.60% 15.00 9.50 4.71 7.13 Breakeven quantity is Fixed cost/weighetd contribution margin per unit Breakeven quantity is = (100380/7.13) Breakeven quantity is =14,077 units Determination of Breakeven quantity of each product :- Break-even Product e Sales Mix% units - each Qty Product 7,095 DVD's Equipment sets 14,077.00 14,077.00 50.40% 49.60% Total 6,982 14,077