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Malibu Corporation has monthly fixed costs of $67,000. It sells two products for which it has provided the following information. Sales Price Contribution Margin $9
Malibu Corporation has monthly fixed costs of $67,000. It sells two products for which it has provided the following information. Sales Price Contribution Margin $9 $15 Product 1 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.) a. Break even sales revenue b. Target sales revenue
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