Finley Corporation has monthly fixed costs of $56,000. It sells two products for which it has provided the following information.
Finley Corporation has monthly fixed costs of $56,000. It sells two products for which it has provided the following information.
Finley Corporation has monthly fixed costs of $56,000. 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? (Hint: Determine the contribution margin ratio for each product.) (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.)
