Question: Help. ****Total fixed cost is different than other questions posted in chegg**** Multiple-Product Break-even, Break-Even Sales Revenue Wherry Blossom Products thc. produces and selis yoga-training

Help. ****Total fixed cost is different than other questions posted in chegg****  Help. ****Total fixed cost is different than other questions posted in
chegg**** Multiple-Product Break-even, Break-Even Sales Revenue Wherry Blossom Products thc. produces and
selis yoga-training productsi how-to DVDs and a bosic equipment set (biocks, strap,
and small pilows). Last year, cherry Blossom Products sold 13,500 DVDs and

Multiple-Product Break-even, Break-Even Sales Revenue Wherry Blossom Products thc. produces and selis yoga-training productsi how-to DVDs and a bosic equipment set (biocks, strap, and small pilows). Last year, cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two products is as follows: Total fixed cost is 596,600 . 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 $18 and a variable cost per unit of $9. Total fixed cost must be increased by $32,200 (making total fixed cost $128,800 ). 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? 2. Compute the break-even quantity of each product. 3a. Prepare an income statement for Cherry Blossom Products for the coming year. 3b. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. (Note: Round the contribution margin ratio to the nearest whole percent; round the break-even sales revenue to the nearest dollar.) 4. Compute the margin of safety for the coming year in sales dollars

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!