What total monthly sales revenue is required to break even

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Question - Finley Corporation has monthly fixed costs of $56,000. It sells two products for which it has provided the following information.

 Sales Price Contribution Margin

Product 1 $15 $9

Product 2 20 4

Required -

a. 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?

b. 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?

Reference no: EM132997681

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