Malibu Corporation has monthly fixed costs of $68,000. It sells two products for

Question

Malibu Corporation has monthly fixed costs of $68,000. It sells two products for which it has provided the following information:

Sales Price Contribution Margin

$9

4

$15

20

product 1

product 2

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? (Round your answer to the nearest dollar amount.)

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.)

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? (Round your answer to the nearest dollar amount.)

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.)

Explanation / Answer

a product 1 product 2 total SP 15 20 contribution 9 4 sales mix 0.3 0.7 total contribution 2.7 2.8 5.5 fixed cost 68000 BEP 3709.091 8654.545 12363.64 BE sales 55636.36 173090.9 228727.3 b product 1 product 2 total SP 15 20 contribution 9 4 sales mix 0.2 0.8 total contribution 1.8 3.2 5 fixed cost 68000 required contribution 84000 BEP 3360 13440 16800 BE sales 50400 268800 319200

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