Finley Corporation has monthly fixed costs of $67,000. It sells two products for which it has provided the following information. Contribution Margin $9 Product 1 Product 2 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 Product 2? (Hint: Determine the contribution margin ratio for each product.) (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 perc for Product 1 and 80 percent for Product 2? (Round your answer to the nearest dollar amount.) a. Sales Price $15 20 b. Answer is complete but not entirely correct. Break even sales revenue Target sales revenue $ 190,625 X $ 275,000 X
Finley Corporation has monthly fixed costs of $67,000. It sells two products for which it has provided the following information. Contribution Margin $9 Product 1 Product 2 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 Product 2? (Hint: Determine the contribution margin ratio for each product.) (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 perc for Product 1 and 80 percent for Product 2? (Round your answer to the nearest dollar amount.) a. Sales Price $15 20 b. Answer is complete but not entirely correct. Break even sales revenue Target sales revenue $ 190,625 X $ 275,000 X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
33
Transcribed Image Text:Finley Corporation has monthly fixed costs of $67,000. It sells two products for which it has provided the following information.
Contribution
Margin
$9
4
Product 1
Product 2
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 f
Product 2? (Hint: Determine the contribution margin ratio for each product.) (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 perce
for Product 1 and 80 percent for Product 2? (Round your answer to the nearest dollar amount.)
a.
Sales Price
$15
20
b.
X Answer is complete but not entirely correct.
Break even sales revenue
Target sales revenue
$ 190,625
$
275,000
ڈے
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