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Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
Edition 6ISBN: 978-1305103962 Exercise 4
Multiple-Product Breakeven
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:
Total fixed cost is $84,920.
Refer to the information for Cherry Blossom Products above. Required:
1. What is the sales mix of DVDs and equipment sets?
2. Compute the break-even quantity of each product.
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:
Total fixed cost is $84,920.
Refer to the information for Cherry Blossom Products above. Required:
1. What is the sales mix of DVDs and equipment sets?
2. Compute the break-even quantity of each product.
Explanation
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Part 1)
Sales mix of DVDs and equipment...
Cornerstones of Managerial Accounting 6th Edition by Maryanne Mowen,Don Hansen ,Dan Heitger
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