What is the sales mix of videos and equipment sets

Reference no: EM13948829

Switzer Company produces and sells two types of yoga-training products: how-to videotapes and a basic equipment set (blocks, strap, and small pillows). Last year, Switzer sold 10,000 videos and 5,000 equipment sets. Information on the two products is as follows:

Equipment	Video	Set
Price	$12.00	$15.00
Variable cost per unit	4.00	6.00

Total fixed costs are $70,000.

Required

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

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

3. Prepare an income statement for Switzer for last year. What is the overall contribution margin ratio? The overall break-even sales revenue?

Reference no: EM13948829

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