Question
7 Finley Corporation has monthly fixed costs of $240,000. It sells two products for which it has provided the following information 10 Sales Price
7 Finley Corporation has monthly fixed costs of $240,000. It sells two products for which it has provided the following information 10 Sales Price points Product 11 Product 2 $35 Contribution Margin $21 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? (Hint Determine the contribution margin ratio for each product) b. What total monthly sales revenue is required to earn a monthly operating income of $105,000 if the relative sales mox is 60 percent for Product 1 and 40 percent for Product 2? Prin a Break even sales revenue References b Target sales revenue
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