Finley Corporation has monthly fixed costs of $240,000. It sells two products for which it has provided the following information.

a. What total monthly sales revenue is required to break even if the relative sales mix is 20 percent for Product 1 and 80 percent for Product 2?
b. What total monthly sales revenue is required to earn a monthly operating income of $105,000 if the relative sales mix is 60 percent for Product 1 and 40 percent for Product 2?

Transcribed Image Text:

Product 1 Product 2 .. Sales Price Contribution Margin $35 $21 40 10