Refer to the information for Peace River Products above.
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:
Total fixed cost is $85,000.
1. What is the sales mix of DVDs and equipment sets?
2. Compute the break-even quantity of each product.