Question
Malibu Corporation has monthly fixed costs of $63,000. It sells two products for which it has pro-vided the following information Sales price contribution margin Product
Malibu Corporation has monthly fixed costs of $63,000. It sells two products for which it has pro-vided the following information
Sales price contribution margin
Product 1 $10 $6
Product 2 103
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 $12,000 if the relative sales mix is 25 percent for Product 1 and 75 percent for Product 2?
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Financial and Managerial Accounting the basis for business decisions
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
17th edition
007802577X, 978-0078025778
