What is the company monthly break-even point

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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.

A. What is the company's monthly break-even point expressed in sales dollars?

B. What monthly sales level must be achieved for Rhinefold to earn a monthly operating income of $350,000?

C. If Rhinefold generates $1,400,000 in monthly sales, how much monthly operating income will the company earn?

D. Assume Rhinefold's margin of safety was $300,000 in May. What was the oompany's operating income in May?

Reference no: EM133076949

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