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Rhinefold brews reduced calorie beer and regular beer. Sales of its reduced calorie beer represent 25% ofthe company's total revenue. Sales ofregularbeer represent the remaining
Rhinefold brews reduced calorie beer and regular beer. Sales of its reduced calorie beer represent 25% ofthe company's total revenue. Sales ofregularbeer represent the remaining 75%. Reduced calorie beer has a contribution margin ratio of 80%, whereas the contribution margin ratio of regular beer is only 60%. Rhinefold's monthly fixed costs average $609,500 1 What is the company's monthly break-even point expressed in sales dollars? S 2 What monthly sales level must be achieved for Rhinefold to eam a monthly operating income of $350,000?S 3 If Rhinefold generates $1,400,000 in monthly sales, it will eam a monthly operating income of 4 Assume Rhinefold's margin of safety was $300,000 in May. What was the company's operating income in May? S 5 If Rhinefold's monthly fixed costs increase by $8,500, what level ofmonthly sales revenue will be required to break-even? S_
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