Question

Refer to the information for Peace River Products above.
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:
Total fixed cost is $85,000.

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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  • CreatedSeptember 22, 2015
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