Mama Balu Corporation manufacture two products Ginger beer drink and Sugar Cane drink. Sales of its Ginger beer drink represent 48% of the companys total revenue. Sales of Sugar Cane drink represent the remaining 52%. Ginger beer drink has a contribution margin ratio of 40%, whereas the contribution margin ratio of Sugar Cane drink is only 50%. Mama Balus monthly fixed costs average $550,000.

1. What is the companys monthly break-even point expressed in sales dollars? (round breakeven percentage to a whole percentage example 33.7% will be 34%)

2 . What monthly sales level must be achieved for Mama Balu to earn a monthly operating income of $100,000?

3. If Mama Balu generates $1,500,000 in monthly sales, what will be the amount of monthly operating income?

4. Assume Mama Balu s margin of safety was $600,000 in May. What was the companys operating income in May?

5. If Mama Balus monthly fixed costs increase by $55,000, what level of monthly sales revenue will be required to break-even?