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PushPush Corporation manufacture two products Diet corn drink and regular corn drink. Sales of its Diet Corn drink represent 35% of the company's total revenue.
PushPush Corporation manufacture two products Diet corn drink and regular corn drink. Sales of its Diet Corn drink represent 35% of the company's total revenue. Sales of regular corn drink represent the remaining 65%. Diet Corn drink has a contribution margin ratio of 50%, whereas the contribution margin ratio of regular corn drink is only 45%. PushPush's monthly fixed costs average $800,000. 1 What is the company's monthly break-even point expressed in sales dollars? 2 What monthly sales level must be achieved for PushPush to earn a monthly operating income of $450,000? 3 If PushPush generates $1,800,000 in monthly sales, what will be the amount of monthly operating income? 4 Assume PushPush's margin of safety was $280,000 in May. What was the company's operating income in May? 5 If PushPush's monthly fixed costs increase by $10,500, what level of monthly sales revenue will be required to break-even
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