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15-32; please answer questions 1&2 15-33; please answer questions 1-3 e the foll

ID: 2419401 • Letter: 1

Question

15-32; please answer questions 1&2 15-33; please answer questions 1-3 e the following information for Exercises 15-32 and 15-33 River Products Inc. produces and sells yoga training products: how-to DVDs and a e River Pro sic equipmen VD an 4500 equipment sets. Information on the two products is as follows: leaxe ouipment set (blocks, strap, and small pillows). Last year, Peace River Products solod DVDs Equipment Sets Price Variable cost per unit $8 4 $25 16 Total fixed cost is $85,000. Exercise 15-32 Multiple-Product Breakeven fer to the information for Peace River Products above. Required: L. What is the sales mix of DVDs and equipment sets? 2. Compute the break-even quantity of each product.

Explanation / Answer

Answer: 15-32

1. Sales mix of DVDs and equipment sets:

=18000/4500=4:1

2. Break-even quantity of each product:

BEP of package = FC/package contribution margin = 85,000/25=3,400 packages

BEP of DVD = 3,400 x 4 = 13,600 units

BEP of Equipment = 3,400 x 1 = 3,400 units

Answer:15-33

1. Sales mix is 4:1:2 (fourth times as many DVDs will be sold as equipment sets, and twice as many yoga mats will be sold as equipment sets).

2.

BEP of package = FC/package contribution margin =114100/35=3,260 packages

BEP of DVD = 3,260 x 4 = 13,040 units

BEP of Equipment = 3,260 x 1 = 3,260 units

BEP of Yoga mats = 3,260 x 2 = 6,520 units

3.

Contribution margin ratio=(157500/418500)*100=37.63%

Break even ratio=114100/0.3763=$303216

Answer:15-34

1. 0.4:1:0.1

2.

BEP of package=2128500/99=21500

BEP of portable=21500*0.4=8600

BEP of stationary=21500*1=21500

BEP of smokers=21500*0.1=2150

3.

Contribution margin ratio=(4950000/13050000)*100=37.93%

Break even ratio=2128500/0.3793=$5611653

Particulars Unit price Unit variable cost Unit contribution margin Sale mix Package contribution margin DVD 8 4 4 4 16 Equipment set 25 16 9 1 9 Package 25
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