Malibu Corporation has monthly fixed costs of $63,000. It sells two products for which it has provided the following information:
|
Sales Price |
|
Contribution Margin |
|
| Product 1 |
$15 |
|
$9 |
|
| Product 2 |
20 |
|
4 |
|
|
| 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? (Round your answer to the nearest dollar amount.)
|
| 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? (Round your answer to the nearest dollar amount.)
|