Exercise 20.4 Computing the Break-Even Point (LO20-4, LO20-5, LO20-6)

Malibu Corporation has monthly fixed costs of $56,000. It sells two products for which it has provided the following information:

	Sales Price			Contribution Margin
Product 1	$15			$9
Product 2	20			4

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? (Round your answer to the nearest dollar amount.)

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? (Round your answer to the nearest dollar amount.)