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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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 prod- ucts is as follows:
                                                    Video                   Set        Â
Â
|
Price |
$12.00 |
$15.00 |
|
Variable cost per unit |
4.00 |
6.00 |
Total fixed costs are $70,000.
Â
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 contri- bution margin ratio? The overall break-even sales revenue?
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