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What total monthly sales revenue is required to break even

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Question - Malibu Corporation has monthly fixed costs of $70,000. It sells two products for which it has provided the following information.

 

Sales Price

Contribution Margin

Product 1

$15

$9

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?

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?

Reference no: EM131744004

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