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


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
Price $8 $25
Variable cost per unit $4 $15

The total fixed cost is $84,920.

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

2. Compute the break-even quantity of each product.

The break-even quantity for DVDs is _____.

The break-even quantity for equipment sets is _____.

Break-Even Point - Definition:

The break-even point is a tangent where the revenues generated are equal to the total costs incurred. The costs are segregated into a variable and a fixed cost. The contribution margin formula is used when calculating the break-even point.

Answer and Explanation: 1

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1. The following is required for calculating the sales mix:

  • The sales volume of the DVDs and basic equipment set
  • The sales per unit of the DVDs and...

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Learn more about this topic:

How to Calculate the Break-Even Point - Definition & Formula


Chapter 5 / Lesson 28

See how to calculate break-even point (in units and dollars). See the variables of the break-even point formula and examples. Understand the purpose of break-even analysis.

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