Pets r us sells dog and cat food its monthly fixed costs

Reference no: EM13588648

Pets R US sells dog and cat food. Its monthly fixed costs average $620,000. Cat food sales represent 80% of the company's total revenue. Dog food sales constitute the remaining 20%. The company has provided the following information expressed on a per-case basis:

Cat Food - Selling Price = $40 dollars and contribution margin = $16 dollars

Dog Good - Selling Prices = $30 and contribution margin = $9 dollars

(a) The total monthly sales revenue required to break-even is $.
(b) The total monthly sales revenue required to earn an operating income of $135,000 is $
(c) The company's margin of safety at a monthly sales level of $2,500,000 is $
(d) If monthly fixed costs increase by $10,000, the break-even point, expressed in sales dollars, will increase to $

Reference no: EM13588648

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