Malibu Corporation has monthly fixed costs of $192,000 It sells two products for which it has provided the following information Sales Price Contribution Margin Product 1 $12 $9 Product 2 20 6 a What total monthly sales revenue is required to break even if the relative sales mix is 40 percent for P...

a Product 1 Product 2 Contribution margin ratio 75 30 Relative sales mix 40 60 30 1 ...

Malibu Corporation has monthly fixed costs of $192,000. It sells two products for which it has provided

Question:

Malibu has monthly fixed costs of $192,000. It sells two products for which it has provided the following information.
..................................................................Sales Price ....
Product 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12 ............................$9
Product 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 ...............................6
a. What total monthly sales revenue is required to break even if the relative sales mix is 40 percent for Product 1 and 60 percent for Product 2?
b. What total monthly sales revenue is required to earn a monthly operating income of $81,000 if the relative sales mix is 20 percent for Product 1 and 80 percent for Product 2?
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...