Question
Malibu Corporation has monthly fixed costs of $59,000. It sells two products for which it has provided the following information: Sales Price Contribution Margin Product
Malibu Corporation has monthly fixed costs of $59,000. It sells two products for which it has provided the following information: |
Sales Price | Contribution Margin | |||||
Product 1 | $15 | $9 | ||||
Product 2 | 20 | 4 | ||||
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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