Question
Malibu Corporation has monthly fixed costs of $56,000. It sells two products for which it has provided the following information. Sales Price Contribution Margin Product
Malibu Corporation has monthly fixed costs of $56,000. It sells two products for which it has provided the following information.
Sales Price | Contribution Margin | ||||
Product 1 | $ | 15 | $ | 9 | |
Product 2 | 20 | 4 | |||
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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? (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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