Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Malibu Corporation has monthly fixed costs of $192,000. It sells 2 products for which it has provided the following information. Product 1 (sales price=$12) (Contribution

Malibu Corporation has monthly fixed costs of $192,000. It sells 2 products for which it has provided the following information.

Product 1 (sales price=$12) (Contribution margin =$9)

Product 2 (sales price=$20) (Contribution margin =$6)

A. What monthly sales revenue is required to break even if the relative sales mix is 40% for product 1 and 60% for product 2

B. What total monthly sales revenue is required to earn a monthly operating income on $81,000 if the relative sales mix is 20% for product 1 and 80% for product 2?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

A BreakEven Sales Revenue with 4060 Sales Mix To achieve breakeventhe total contribution margin need... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

11th Edition

978-0132568968, 9780132568968

More Books

Students also viewed these Accounting questions

Question

P ( 0.20 Answered: 1 week ago

Answered: 1 week ago

Question

When should you avoid using exhaust brake select all that apply

Answered: 1 week ago

Question

They do management, we need leadership.

Answered: 1 week ago