Question - Malibu Corporation has monthly fixed costs of $70,000. It sells two products for which it has provided the following information.
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Sales Price
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Contribution Margin
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Product 1
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$15
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$9
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Product 2
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20
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4
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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?