Question
Finley Corporation has monthly fixed costs of $56,000. It sells two products for which it has provided the following information. Sales PriceContribution MarginProduct 1$15$9Product 2204
Finley Corporation has monthly fixed costs of $56,000. It sells two products for which it has provided the following information.
Sales PriceContribution
MarginProduct 1$15$9Product 2204
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? (Hint: Determine the contribution margin ratio for each product.)(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.)
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