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Malibu Corporation has monthly fixed costs of $192,000. It sells two products for which it has provided the following information. Sales Price Contribution Margin Product

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

Sales Price Contribution Margin
Product 1 $ 12 $ 9
Product 2 20 6

a. What total monthly sales revenue is required to break even if the relative sales mix is 40 percent for Product 1 and 60 percent for Product 2?

b. What total monthly sales revenue is required to earn a monthly operating income of $81,000 if the relative sales mix is 20 percent for Product 1 and 80 percent for Product 2?

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