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Question - Multiple-Product Breakeven

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:

 

DVDs

Equipment Sets

Price

$12

$14

Variable cost per unit

4

5

Total fixed cost is $84,000.

Required:

1. What is the sales mix of DVDs and equipment sets?

2. Compute the break-even quantity of each product. If required, round your calculations and answers to nearest whole value.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92858484
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