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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's monthly fixed costs increase by $8,500, what level of monthly sales revenue will be required to break-even?
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