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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?
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