Question
Malibu Corporation has monthly fixed costs of $65,000. It sells two products for which it has provided the following information: Sales Price Contribution Margin Product
Malibu Corporation has monthly fixed costs of $65,000. 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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