Malibu Corporation has monthly fixed costs of $66,000. 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:
Question 1: 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?
Question 2: 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?
Note: Please show the work not just the answer.