Question
Malibu Corporation has monthly fixed costs of $60,000. It sells two products for which it has provided the following information: Sales Price Contribution Margin Product
Malibu Corporation has monthly fixed costs of $60,000. It sells two products for which it has provided the following information: |
Sales Price | Contribution Margin | |||||
Product 1 | $ | 10 | $ | 6 | ||
Product 2 | $ | 10 | $ | 3 | ||
|
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?(Round your answer to the nearest dollar amount. Omit the "$" sign in your response) |
Sales revenue | $ |
b. | What total monthly sales revenue is required to earn a monthly operating income of $12,000 if the relative sales mix is 25 percent for Product 1 and 75 percent for Product 2?(Round your answer to the nearest dollar amount. Omit the "$" sign in your response) |
Sales revenue | $ |
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