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

the following information.

LO$20-4,$ LO$20-5,$ LO$20-6$

EXERCISE $20\mathrm{.}4$

Computing the Break$-$Even

Point

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 mix is $60$ percent for Product $1$ and $40$ percent for Product $2?$