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How much monthly operating income will the company earn

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Question - Rhinefold brews reduced calorie beer and regular beer. Sales of its reduced calorie beer represent 25% of the company's total revenue. Sales of regular beer 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. If Rhinefold generates $1,400,000 in monthly sales, how much monthly operating income will the company earn?

Reference no: EM133090887

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