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Glow Worm Corporation makes flashlights and batteries. Its monthly fixed costs average $1,690,000. The company has provided the following information about its two product lines.
Glow Worm Corporation makes flashlights and batteries. Its monthly fixed costs average $1,690,000. The company has provided the following information about its two product lines.
Contribution Margin Ratio | Percentage of Total Sales | ||||
Flashlights | 35 | % | 40 | % | |
Batteries | 20 | 60 | |||
a. Determine the companys monthly break-even point in sales dollars.
b. How much revenue must the company generate in the upcoming month for a monthly operating income of $3,380,000?
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