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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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