Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic...
Question:
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
Become a Study.com member to unlock this answer! Create your account
View this answer1. 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...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
How to Calculate the Break-Even Point - Definition & Formula
from
Chapter 5 / Lesson 28
159K
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.
Related to this Question
- 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 P
- Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, straps, and small pillows). Last year, Cherry Blossom Products sold 13,530 DVDs and 4,510 equipment sets. Information on the two product
- Maya's Yoga Company expects that out of every 10 items sold, 3 will be beginner sessions ($12 per sessions for the customer), 3 will be intermediate sessions ($18 per session), 2 will be advanced sessions ($20 per session), and 2 will be boutique items (s
- Memories, Inc. (MI) produces souvenir figurines that are sold wholesale to gift shops. They have created a new line of dolls representing historical figures. The company's goal is to produce and sell
- High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data related to May, the first mon
- Doughnuts Inc. uses flour to produce two joint products. When processed each pound of flour yields 8 units of premium and 12 units of deluxe. Premium donuts sell for $1.00 per unit and deluxe sells f
- High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The followi
- Blossom Equipment purchased machinery from a Japanese firm and must make a payment of yen 292,200,000 in 45 days. The bank quotes a forward rate of yen 120.00/$ to buy the required yen. What is the cost to Blossom in U.S. dollars?
- High Country, Inc. is a company that produces and sells many recreational products. It has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The
- Markham company makes two products: Basic Product and Deluxe Product. Annual production and sales are 1, 700 units of Basic Product and 1, 100 units of Deluxe Product. The company has traditionally us
- Markham Company makes two products: Basic Product and Deluxe Product. Annual production and sales are 1,700 units of Basic Product and 1,100 units of Deluxe Product. The company has traditionally used
- High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month
- High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data related to May, the first mont
- Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which sells blank and recorded DVDs. DVD Mart purchases tapes from Globe at $25.00 per DVD; DVDs are shipped in packages of 60. G
- Yogatta get Yoga, Inc. operates a chain of high-end athletic apparel stores. The stores sell ten different styles of yoga pants with identical unit costs and selling prices. A unit is defined as one pair of yoga pants. Each store has a manager who is paid
- High Country Inc. produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following
- Off Road, Inc. (ORI) is considering a new product--a shock absorbing seat cushion to be sold to its Dune Buggy customers. Currently, ORI does not sell any accessories, so this product will not affect
- Serenity Garden Inc. produces and sells a variety of garden accessories. One of the product lines the company makes is unpainted gnome statues that come in three sizes: small, medium, and large. The company is considering painting the gnomes. The followin
- Mega Electronix sells television sets and DVD players. The business is divided into two divisions along product lines. CVP income statements for a recent quarter's activity are presented below. TV Division DVD Division Total Sales $600,000 $400,000 $1,000
- Betty DeRose, Inc. produces and sells three products. Information about these products for 2022, the most recent year, appears below: | |Product A |Product B |Product C |selling price per unit |$33
- High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The follow
- Wang Inc. produces and sells DVDs to business people and students who are planning extended stays in China. It has been very successful with two DVDs: Beginning Mandarin and Conversational Mandarin. I
- High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first mont
- High Country, Inc. produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the US. The following cost and revenue data relate to May, the first month of the plan
- Twyla Company operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows. Product C Product D Units sold 9,00
- Dreamland Company produces pillows. Each pillow has a variable cost of $8 and fixed costs are $78,000 per month. Each pillow sells for $17. If the company produces and sells 65,000 pillows in February, net income for the month will be ____. a. $585,000 b.
- Yogi Company manufactures luggage sets. Yogi sells its luggage sets to department stores. Yogi expects to sell 650 luggage sets for $320 each in January and 2,050 luggage sets for $320 each in Februar
- Caltec, Inc. produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow: [TABLE] Common fixed expenses in the company total $105,000 annually. Last year the company produced and sold 37,500 CD packs and 18
- Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aromatherapy items. Nicole uses a perpetual inventory system and is
- Mandarin Furniture manufactures two products, pillows and cushions from the joint process. Pillows are allocated $7,000 of the total joint costs of $25,000. There are 2,500 pillows produced and $2500 cushions produced each year. Pillows can be sold at the
- Christy Company operates in the entertainment industry. In June 2013, Christy purchased Matt?s Movies which produces and distributes various video products. The purchase resulted in $2.7 million in go
- Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion?s products is given below: Product AProduct B Sales revenue $44,000 $59,000 Less: Variable costs17,80026,200 Con
- Marwick Innovations, Inc. produces exercise and fitness gear. Two of its newer products require a finishing process that can only be completed on machines that were recently purchased for this purpose
- Honolulu Novelties, Inc. makes two products, Hawaiian Fantasy and Tahitan Joy. Their revenue, cost, and sales data for the two products in 2013 follows: Selling price per unit: Hawaiian: $15 Tahitan:
- Christy Company operates in the entertainment industry. In June 2013, Christy purchased Matt's Movies which produces and distributes various video products. The purchase resulted in $2.7 million in goodwill. Since then, Christy has undertaken a number of
- Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $620,000, and the sales mix is 40% bats and 60% gloves. The unit selling price and the un
- The following costs result from the production and sale of 12,000 CD sets manufactured by Gilmore Company for the year ended December 31, 2015. The CD sets sell for $18 each. The company has a 25% inc
- Cowles Corporation, Inc. makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Product R. Budgeted production of Product R for the next five months is a
- Quality Data, Inc. manufactures two products, CDs and DVDs, both on the same assembly line. The predicted sales are 20,000 CD and 25,000 DVD. The predicted costs for the year 2010 are as follows: Vari
- Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 5,700 rackets and sold 4,600. Each racket was sold at a price of $87. Fixed overhead costs are $72,390 and
- Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. Each racket was sold, at a price of $90. Fixed overhead costs are $78,000, a
- Island Novelties, Inc., of Palau makes two products, Hawaiian Fantasy and Tahitian Joy. Present revenue, cost, and sales data for the two products follow: Hawaiian FantasyTahitian Joy Selling price pe
- Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows: Februa
- Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows: February
- Nicole's Getaway Spa (NGS) has been so successful that Nicole has decided to expand her spa by selling merchandise. She sells things such as nail polish, at-home spa kits, cosmetics, and aromatherapy
- Tee Times, Inc. produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2004 for its Elite Quality golf club sets: Revenues (400 sets sold @ $600 per set) $240,000 Variable costs $160
- Apple Inc. owns a 90% interest in Banana Company. Banana Company, in turn, owns an 80% interest in Carrot Company. During 2019, Carrot Company sold $50,000 of merchandise to Apple Inc. at a gross profit of 20%. Of this merchandise, $10,000 was still unsol
- Golfers. Inc. (GI) manufactures golf-related equipment including golf balls. This year's expected production of golf balls is 80,000 packs (each consisting of four golf balls). Cost data are as follows: Per Pack 80,000 Packs Product costs directly traceab
- Nittany Company sells three products with the following seasonal sales pattern: Products ; Quarter ; A ; B ; C ; 1 ; 40% ; 30% ; 10% ; 2 ; 30% ; 20% ; 40% ; 3 ; 20% ; 20% ; 40% ; 4 ; 10% ; 30% ; 10% ;
- Danny Company makes and sells stuffed animals. One product, Panda Bear, sells for $28 per bear. Panda Bears incur fixed costs of $100,000 per month and a variable cost of $12 per bear. How many Panda Bears must be produced and sold each month to break eve
- Royal Garden Tools produces and sells two products. Following is the revenue and cost information for the company's two products. Last year the company sold 15,000 Grass Trimmers and 25,000 Leaf Blowe
- Viva Inc. produces and sells coffee beans. This month, it earned $500 by selling coffee beans to Morning Cuppa Inc. The $500 received by Viva is its: a. revenue b. equity c. gain d. debt
- The Elberta Fruit Farm of Ontario always has hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received information on a cherry-picking machine that is being purchased by many fruit farms. The machine is a moto
- In the coming year, Sunland, Inc. will be introducing its first product, a wrist brace that protects serious video garners from repetitive-motion injuries. The brace will be sold for $15 to retailers throughout the country. All sales will be made on the a
- Chung Inc. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Old Equipment New Equipment Purchase price $225,000 $375,000 Accumulated d
- Helmkamp Products sells golf clubs and accessories to pro shops. Gross sales in 2009 were $1,150,200 (Helmkamp's list price) on terms 3/15, n/45. Customers paid for $822,800 (Helmkamp's list price) of the merchandise within the discount period and the rem
- MoviesPlus, Inc. is in its third year of business. The company offers DVD rental to online customers for a fixed monthly fee. For $20 per month, a customer receives three DVDs each month, one at a time as the previous one is returned. No matter how many D
- High Country Corp. produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the US. The following cost and revenue data relate to May, the first month of the plan
- Lululemon makes two types of yoga mats. Data for the company's activities during a typical month are as follows: Lululemon's fixed costs are $352,500. Lululemon is thinking about introducing a new ma
- Tee Times, Inc. produces and sells the finest quality golf clubs in all of Clay County. The company expects the following revenues and costs in 2009 for its Elite Quality golf club sets: Revenues (400 sets sold @ $600 per set) $240,000 Variable costs $1
- Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budgeted production of Biks for the next five months is as follows: February 14,000 units March 15,500 units April 11,900 units
- Novelties, Inc., of Palau, makes two products, Hawaiian Fantasy, and Tahitian Joy. Present revenue, cost and sales data on the two products follow: Hawaiian Fantasy Tahitian Joy Selling Price Per Uni
- Kristin Company sells 400 units of its products for $20 each to Logan Inc. for cash. Kristin allows Logan to return any unused product within 30 days and receive a full refund. The cost of each produc
- Kristin Company sells 320 units of its products for $22 each to Logan Inc. for cash. Kristin allows Logan to return any unused product within 30 days and receive a full refund. The cost of each produc
- Bramble Corporation obtained a franchise from Sonic Hedgehog Inc. for a cash payment of $160,000 on April 1,2017. The franchise grants Bramble the right to sell certain products and services fo a peri
- Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $506,000, and the sales mix is 60% bats and 40% gloves.The unit selling price and the uni
- Advanced Electronics manufactures DVDs and sells them directly to retailers who typically sell them for $20. Retailers take a 40% margin based on the retail selling price. Advanced's cost information is as follows: DVD package and disc $2.50/DVD Royalties
- Streeterville Foods, Inc., has recently purchased a small mill that it intends to operate as one of its subsidiaries. The newly acquired mill has three products that it offers for sale wheat cereal, pancake mix, and flour. Each product sells for $10 per p
- GuestLodge, Inc. also has the right to operate a golf course near the national park. GuestLodge sells punch cards to the course, where customers can pay $500 to purchase a "10-Pack" (10 rounds of golf). The punch cards do not have a stated expiration date
- On July 6, Nexto Inc. sells $260 of merchandise to a customer who pays with a credit card. Nexto Inc. receives their payments immediately from the credit card company less a 5% fee charged by the cred
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $1,840,000 based on a sales volume of 240,000 video disks. Detroit Disk has been selling the
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,360,000 based on a sales volume of 260,000 video disks. Detroit Disk has been selling the
- Detroit Disk Inc. is a retailer for digital video disks. The projected net income for the current year is $2,710,000 based on a sales volume of 290,000 video disks. Detroit Disk has been selling the
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $1,920,000 based on a sales volume of 240,000 video disks. Detroit Disk has been selling the
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,040,000 based on a sales volume of 210,000 video disks. Detroit Disk has been selling the
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,580,000 based on a sales volume of 300,000 video disks. Detroit Disk has been selling the
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $1,960,000 based on a sales volume of 280,000 video disks. Detroit Disk has been selling the
- A. Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,200,000 based on a sales volume of 270,000 video disks. Detroit Disk has been selling t
- Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,440,000 based on a sales volume of 240,000 video disks. Detroit Disk has been selling the
- Coles Corporation, Inc. makes and sells a single product, Product R. Three yards of Material K is needed to make one unit of Product R. Budgeted production of Product R for the next five months is as
- Twyla Company operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows. CD Units sold8,90019,920 Selling price per unit$94$76
- Howell Company manufactures automobile tires. On July 15, 2018, the company sold 1,400 tires to the Nixon Car Company for $55 each. The terms of the sale were 2/15, n/30. Harwell uses the gross method
- Alpha Company produces and sells two products: Alpha-Basic and Alpha-Deluxe. In the coming year, Alpha expects to sell 3,000 units of Alpha-Basic and 1,500 units of Alpha-Deluxe. Information on the two products is as follows: Alpha-Basic Alpha-Deluxe Pric
- E-song Tunes Inc. is in the business of developing, promoting, and selling children's videos. The company developed a new DVD video, called Jake the Sleepy Old Dog, on January 1, 2014. For the first s
- Target Corp. sells merchandise primarily through its retail stores. On the other hand, Amazon.com uses its e-commerce services, features, and technologies to sell its products through the Internet. Recent balance sheet inventory disclosures for Target and
- Stardom, Inc. cans peaches for sale to food distributors. In 2014 Stardom, Inc. sold the peaches by the gross (144 pounds of peaches is equivalent to a gross or one unit of peaches) and ended up selli
- BTO, Inc., produces and sells two products: the X 100 and X 200. Revenue and cost information for the two products are as follows: || ||X 100||X 200 | Selling price per unit|$10.00|$27.00 | Variable e
- Happy Ceramic, Inc. produces various household goods. They want to produce one of two possible new products: either ceramic photo frames or ceramic water fountains. Each product wou
- ThreePoint Sports Inc. manufactures basketballs for the Women's National Basketball Association (WNBA). Fixed costs for the period were the cost of goods sold $ 960,000, and selling and administrative
- Toy Box, Inc., is contemplating expanding sales of their children's toys. They have an opportunity to stock and sell the X toy that has been a big hit with children everywhere. They must order the X toys from the manufacturer in a minimum order of 100 at
- Coles Company, Inc. makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Product R. Budgeted production of Product R for the next five months is as follows: August September October November December Units
- Mattel, Inc., designs, manufactures and markets toy products worldwide. Mattel's toys include Barbie fashion dolls and accessories, Hot Wheels, and Fisher-Price brands. For a recent year, Mattel reported the following net cash flows from operating activit
- Company goal is to produce and sell 350,000 dolls each year. The company keeps one month supply of dolls in finished goods inventory. The company has 10 production lines. Each of the five workers on e
- Sweet Acacia Corp. sells a snowboard, EZslide, that is popular with snowboard enthusiasts. Below is information relating to Sweet Acacia Corp.'s purchases of EZslide snowboards during September. Durin
- Hancock Company manufactures and sells two lines of furniture, case goods, and upholstery. During the most recent accounting period, the Case Goods and Upholstery Divisions sold 15,000 and 2,000 units
- Bogeeta, Inc., manufactures two products - bicycles and skateboards. For each bicycle sold, the company receives $95. For each skateboard sold, it receives $65. Each bicycle requires 10 minutes of Gordy's time, 15 minutes of Kelly's time, 8 minutes of Dav
- The Glass Menagerie makes small, pressed-resin ducks and ducklings. They are sold as sets containing one duck and five ducklings. The following information is available about the company?s selling pri
- Electronics, Inc., is a high-volume, wholesale merchandising company. Most of its inventory turns over four or five times a year. The company has had 50 units of a particular brand of computers on hand for over a year. These computers have not sold and pr
- Show-Off, Inc. sells merchandise through three retail outlets-in Las Vegas, Reno, and Sacramento-and operates a general corporate headquarters in Reno. A review of the company's income statement indic
Explore our homework questions and answers library
Browse
by subject