Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDS and a basic equipment set...

 

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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 13,500 +DVDs and 4,500 equipment sets. Information on the two products is as follows: | DVDs Equipment Sets $8 $25 Variable cost per unit 15 Price Total fixed cost is $99,900. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at a price of $16 and a variable cost per 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, remain the same. 1. What is the sales mix of DVDs, equipment sets, and yoga mats? 3:1:2 2. Compute the break-even quantity of each product. Break-even DVDs Break-even equipment sets Break-even yoga mats Units Units Units 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 13,500 +DVDs and 4,500 equipment sets. Information on the two products is as follows: | DVDs Equipment Sets $8 $25 Variable cost per unit 15 Price Total fixed cost is $99,900. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at a price of $16 and a variable cost per 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, remain the same. 1. What is the sales mix of DVDs, equipment sets, and yoga mats? 3:1:2 2. Compute the break-even quantity of each product. Break-even DVDs Break-even equipment sets Break-even yoga mats Units Units Units