Question
4. Multiple product companies Pet Park International sells cat food and dog food. Its monthly fixed costs average $620,000. Cat food sales represent 80% of
4. Multiple product companies
Pet Park International sells cat food and dog food. Its monthly fixed costs average $620,000. Cat food sales represent 80% of the company's total revenue. Dog food sales constitute the remaining 20%. The company has provided the following information expressed on a per-case basis:
Selling Price | Contribution Margin | |
Cat food | $40 | $16 |
Dog food | $30 | $9 |
(A) The total monthly sales revenue to break-even is $____. (Rounded)
(B) The total monthly sales revenue required to earn an operating income of $135,000 is $_____.
(C) The compnay's margin of safety at monthly sales level of $2,500,000 is $____.
(D) If monthly fixed costs increase by $10,000, the break-even point, expressed in sales dollars, will increase to $____.
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