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
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$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.