Malibu Corporation has monthly fixed costs of $96,000. It sells two products for which it has provided

Question:

Malibu has monthly fixed costs of $96,000. It sells two products for which it has provided the following information:

Malibu Corporation has monthly fixed costs of $96,000. It sells

a. What total monthly sales revenue is required to break even if the relative sales mix is 30 percent for Product 1 and 70 percent for Product 2?
b. What total monthly sales revenue is required to earn a monthly operating income of $16,000 if the relative sales mix is 20 percent for Product 1 and 80 percent for Product 2?

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...