Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Finley Corporation has monthly fixed costs of $60,000. It sells two products for which it has provided the following information. Contribution Product 1 Product
Finley Corporation has monthly fixed costs of $60,000. It sells two products for which it has provided the following information. Contribution Product 1 Product 2 Sales Price $15 20 Margin $9 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.) a. Break even sales revenue b. Target sales revenue
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started